There are obstacles to overcome before this becomes reality. History shows that attempts to introduce shared service solutions or platforms are fraught with problems. Trading platforms have come and gone. New market utilities take time to bed in.
There are other issues to resolve as well. For a start, there is a big challenge in aligning interests. Each firm will have different legacy systems; some will find it hard to justify the new investment.
Legal and regulatory considerations, and potentially changes, will also be needed before the market can fully take advantage of the new technology. A research paper produced by Euroclear together with fintech lawyers from Slaughter & May in November 2016 detailed a list of open questions about the current regulatory and legal environment, at least in the European Union. It concluded that regulation is not currently optimised to facilitate the widespread use of DLT in the securities post-trade process and to take full advantage of it.
There are practical questions as well. How would the migration to DLT systems work? How would those systems link to traditional systems in non-DLT jurisdictions or markets?
Finally, whatever course existing players take, we need to look beyond the traditional banking industry to new entrants and how they will be accommodated in a regulatory system geared to minimising any threat to financial stability.