Central securities depositories are important entities on financial markets that provide settlement and other similar services for securities transactions for different types of securities. There exist national CSDs which deal with domestic securities and international CSDs which deal with Eurobonds. This paper analysis the CSDs in the European Union and their importance. They have large public function because they provide liquidity to the market by facilitating settlement of securities transaction. Because of their role, CSDs are subject to systematic and different kind of risks. Due to this, they are subject to many different extensive regulations and laws in the European Union. Distributed ledger technology such as blockchain and smart contract enables users to store and access data on a certain set of assets and their owners in a shared database of transactions or account balances. It has the possibility of having disruptive impact on CSD industry because it can reduce costs and increase efficiency but it is still not developed enough in order to support the functioning of all CSD’s operations.