Calastone is to migrate its global network of more than 1700 financial organisations onto distributed ledger technology (DLT) in May.
The London-based global fund transaction network says its distributed market infrastructure (DMI), which will create a global funds market connecting buyers and seller across 40 markets, will reduce the global cost of distribution by up to £3.4 billion (€3.9 billion).
In a survey that Calastone conducted during 2018 with participants on its global network, 84% of respondents indicated that legacy technology was contributing to inefficiencies in fund trading and processing.
Of these firms, 44% indicated that distributed ledger technology will have an important impact in addressing these pain points, including inefficiencies in order routing and settlement.
With release of the DMI, Calastone will move a range of existing services onto the blockchain, including order routing, registry management, settlement and real-time fund transfers. It will also support electronic-owned share classes and tokenised settlement.
Using the DMI, participants will view transaction information on a shared ledger, thereby facilitating reconciliation and providing automated communication of payment instructions to settlement banks.
Campbell Brierley, Calastone’s chief innovation officer, said that by bringing trading relationships together on blockchain-enabled infrastructure, participants will benefit from a real-time view of each record and, consequently, “a single version of the truth”.
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