RISE Financial Technologies claims to have pulled ahead of the pack in the emerging technology arms race with the creation of the next generation of blockchain for the post-trade sector.
RISE confirmed that it is testing its next-level solution with a number of banks, custodians, and central securities depositories and expects the results to be published in H2 2016.
The London-based newcomer to the technology market outlined the benefits to its distributed ledger technology as a de-centralised ledger that offers permissioned transparency by giving selective access to different types of information depending on who you are.
This gives investors sight and control over their assets but not those of other participants. Issuers have a view but no control into final beneficiaries, while financial institutions such as ledger operators and validators have access to client information.
At the same time, regulators gain a complete view of the information in their jurisdiction in real time but have no direct control over the assets.
According to RISE, this framework ensures any single point of failure is removed and guarantees data integrity.
"Distributed ledger technology is being hyped as the solution to fundamentally change the way key parts of the post-trade process—primarily clearing, settlement and safekeeping—work", said Thorsten Peisl, CEO of RISE.
"But for this to happen, the technology has to be re-imagined and re-designed from the ground up so that its attributes are specifically matched to the particular needs of the post-trade sector."
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