DLT not a faultless solution for counterparty risk

Much has been said and written about distributed ledger technology (DLT) as the solution to counterparty risk, but that only applies to traditional post-trade contexts. In a recently published research paper, James Si Zeng, associate professor at the University of Hong Kong argues that DLT might not suffice to address an overlooked problem that is specific to tokenisation – redemption counterparty risk.