$ 5.7 trillion investment company introduces blockchain technology
Specialists of one of the largest investment companies Vanguard have completed the first part of the calculation tests using blockchain technology, the official press release of the company reports.
To implement this initiative, the investment giant made a deal with the blockchain startup Symbiont, as well as with The Bank of New York Mellon and Citibank. The new development should simulate the full cycle of securities settlements using the DLT blockchain.
The developers plan to implement smart contracts directly into the process of release and settlement in the next stages of testing.
“By digitizing and streamlining the ABS issuance process, we will be able to increase the speed and transparency of transactions while reducing costs and minimizing exposure to risk”.
According to the CEO of Symbiont Mark Smith, this project is basic to the development of capital market infrastructure and blockchain technology.
A long way
The partnership between Vanguard and Symbiont has lasted for two and a half years. The first joint initiative was the introduction of blockchain technology in the process of distributing price index data for funds with a capital of $1.3 trillion. In May last year, the developed solution began to be used for commercial purposes and the companies moved to closer cooperation.