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The trade settlement process in a traditional banking structure typically involves multiple intermediaries, such as 

With regards to custody of the asset, the custodian bank holds the assets on behalf of the investor and is responsible for safekeeping, recordkeeping, and performing certain administrative tasks such as collecting dividends and voting proxies.

For short positions, the trader must first locate shares to borrow before they can sell them short. This is known as the "locate" process. The trader may borrow shares from a variety of sources, including other brokers or institutional investors, and must ensure that the shares are available for borrowing for the duration of the short position.

In terms of financing, the trader must have enough capital to cover the potential losses from the short position. This can be done through a variety of methods, such as margin accounts or borrowing from a broker.

In contrast, the digital ledger technology that utilizes a blockchain, the process of trade settlement can be made faster and more efficient. By using a decentralized ledger, assets can be transferred and ownership can be recorded almost instantly. This eliminates the need for intermediaries such as custodian banks and CSDs.

Custody of assets is also different in a blockchain based system as the assets are held in a digital wallet and the private key of the wallet is held by the investor.

In terms of short positions, the process of locating shares is also different, as there are no physical shares in a blockchain based system, and shares can be borrowed using smart contracts.

Financing positions is also different as the assets are tokenized and can be traded on a decentralized exchange, which can offer more liquidity and lower costs.

Overall, the use of blockchain technology can streamline the trade settlement process, reduce costs, and improve transparency.