Hong Kong
13 February 2017
Reporter: Stephanie Palmer

Blockchain capital markets prototype launched


EquiChain has released a working prototype of its blockchain solution for global capital markets, with plans to implement a full end-to-end custody pilot this year.

The infrastructure platform is intended to drive efficiency and improve global investor access in emerging and frontier markets through distributed ledger technology (DLT).

It consolidates the functions of the asset manager, custodian, broker, exchange and central securities depository, allowing for direct interaction and exchange of value between participants.

Hugh Madden, CTO of EquiChain, explained: “EquiChain’s use of cryptographic signatures reduces counterparty risk and prevents fraud, making blockchain-based transfers safer than other alternatives.”

EquiChain has also announced the closing of its initial round of funding, secured from board members, advisors and close stakeholders, and established two industry working groups.

One group will be focused on institutional investors, and the other will work on market infrastructure. They will bring together thought leaders, helping the platform to develop while embracing current and future regulatory requirements.

Nicholas Bone, founder and CEO of EquiChain, said: “The current securities transaction lifecycle is complex, costly, time-consuming and fraught with risk. EquiChain will use DLT to redefine securities transaction flows creating a full ‘execution-to-custody’ capability.”

He added: “Blockchain is particularly relevant for emerging and frontier markets, which are often perceived by foreign investors as being higher risk, while typically having less cumbersome existing infrastructure to accommodate. DLT gives such markets the opportunity to leapfrog existing solutions to deliver greater efficiency, liquidity and ease of access.”

Markus Ruetimann, senior advisor to the EquiChain board, commented: “Accessing frontier and emerging markets poses many operational challenges. EquiChain's solutions will make investing, trade tracking and data flows much more efficient and robust. This will make these markets more accessible for investment, whilst reinforcing local infrastructure.”

More technology news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Raymond James selects Red Deer for MiFID II
16 January 2018 | London | Reporter: Jenna Lomax
Raymond James Investment Services has chosen Red Deer’s research valuation management solution to adhere to MiFID II
Northern Trust acquires technology resources from Citadel
12 January 2018 | Chicago | Reporter: Jenna Lomax
Citadel has agreed to give Northern Trust the software development rights for Omnium, a software solution, along with an undisclosed number of development staff
SETL and OFI AM being to process blockchain transactions on IZNES
11 January 2018 | Paris | Reporter: Jenna Lomax
IZNES, which is powered by SETL’s blockchain technology, has used the IZNES system in a series of trials with selected clients
DTCC launches new trade processing platform
10 January 2018 | New York | Reporter: Jenna Lomax
DTCC Exception Manager is DTCC’s latest addition to its trade processing product suite, supporting and securities transactions globally
Synechron: Innovation will remain key in 2018
09 January 2018 | New York | Reporter: Becky Butcher
Innovation will be the driving force in advancing key priorities such as compliance, risk and automation in 2018, according to Synechron
Linedata teams up with LSE’s Una Vista for MiFID II
03 January 2018 | Paris | Reporter: Jenna Lomax
Linedata will use UnaVista as an approved reporting mechanism to report transactions to national competent authorities for all required asset classes
Texan broker completes first CME Clearing bitcoin futures trade
02 January 2018 | Houston | Reporter: Jenna Lomax
Choice! Natural Gas, a portfolio company of inter-dealer broker OTC Global Holdings (OTCGH), has completed its first bitcoin-denominated futures block trade through CME Clearing
More technology news