Calastone's global transaction network will use new tech from 2019
A funds transaction network processing over U$80 billion of trades each month is promising greater efficiency by moving to a full blockchain-enabled infrastructure.
Calastone, the largest global fund transaction network, will migrate the technology underpinning the core of its network to a private and permissioned based blockchain infrastructure in 2019.
This move will mean an end to the need to replicate and reconcile records across the value chain and has been proven during a proof-of-concept earlier this year.
The firm says that the mutual funds market is challenged by inefficiencies, cost and risk which creates a barrier to meeting client needs.
“Our vision remains to work with the industry to reduce the overall total cost of ownership by making it friction-free and increasing value for all market participants,” explained CEO Calastone Julien Hammerson.
Deputy CEO Ken Tregidgo added that the funds industry is facing increasing cost pressures due in part to regulatory requirements. But he noted that there is no rush for clients to move to blockchain.
“Whilst the potential for long term change is great, the migration path for customers to take advantage of the future infrastructure will remain seamless, enabling clients to move when they are ready. A blockchain-enabled marketplace means alleviating operational inefficiencies, increasing performance and generating greater savings - a win-win for everybody,” he said.
Calastone, the largest global fund transaction network, will migrate the technology underpinning the core of its network to a private and permissioned based blockchain infrastructure in 2019.
This move will mean an end to the need to replicate and reconcile records across the value chain and has been proven during a proof-of-concept earlier this year.
The firm says that the mutual funds market is challenged by inefficiencies, cost and risk which creates a barrier to meeting client needs.
“Our vision remains to work with the industry to reduce the overall total cost of ownership by making it friction-free and increasing value for all market participants,” explained CEO Calastone Julien Hammerson.
Deputy CEO Ken Tregidgo added that the funds industry is facing increasing cost pressures due in part to regulatory requirements. But he noted that there is no rush for clients to move to blockchain.
“Whilst the potential for long term change is great, the migration path for customers to take advantage of the future infrastructure will remain seamless, enabling clients to move when they are ready. A blockchain-enabled marketplace means alleviating operational inefficiencies, increasing performance and generating greater savings - a win-win for everybody,” he said.
