A large Asian stock exchange recently announced plans to implement a blockchain-enabled solution for recording shareholdings and managing the clearing and settlement of equity transactions. KPMG professionals conducted a detailed review of the security design and architecture of the platform against security objectives identified by Management. This supported the stock exchange's decision to move forward with the solution.
As the stock exchange was leveraging a proprietary Distributed Ledger solution (DLT), it was imperative that they considered the security implications of the design architecture of the DLT platform, the inherent risks and mitigating factors to consider the security of trades executed on the platform.
KPMG professionals from our Emerging Technology Risk, Cyber Security Services and Lighthouse Data and Analytics center of excellence collaborated on the assessment by identifying security risks, analyzing the solution's security architecture and design, and performing specific tests to determine if the solution addressed security objectives.
The blockchain assessment framework provided additional areas of considerations with respect to Management's security objectives and further opportunities to enhance stakeholder trust in the solution.