London-based global funds transaction network Calastone has announced the launch of its blockchain-based decentralized market infrastructure (DMI). According to its press release, the DMI will be the “largest community of global financial services organizations connecting and transacting via distributed ledger technology.”
Calastone connects many of the world’s leading financial institutions, boasting of over 1,800 customers spread across 41 markets. Its clients include JP Morgan Asset Management, Old Mutual, F&C Investments, Findlay Park, Henderson Global Investors and KBL European Private Bankers.
The firm has been testing its blockchain platform for close to two years, the release revealed. The DMI will provide Calastone’s clients with a common global marketplace for the trading and settlement of funds. The platform will also help the clients save billions every year, the firm stated, adding:
“Calastone has highlighted the scale of tangible value the DMI could bring to the industry, forecasting more than £3.4bn in savings per year for the mutual funds market worldwide, achieved through the technological mutualisation of the distribution model.”
The DMI will be available to financial services firms across the globe. It will give them a “fully mutualised global funds marketplace whereby the trading, settlement and servicing of funds is conducted in real-time.” It will bring down the ever-inflating costs associated with running such platforms while also stripping out the operational burdens for the customers.
The move by Calastone is significant given its huge customer base. The firm, which has offices in Luxembourg, Singapore and Sydney as well, process over 9 million messages and £170 billion ($216 billion) of transactions each month. The firm boasts of 99% coverage in the U.K., with its systems supporting over 190 types of messaging formats and standards.
Julien Hammerson, Calastone’s CEO stated, “The launch of the DMI today marks an important step for the entire funds industry, creating a friction-free global marketplace for funds. By leveraging the latest technology we are able to provide the investment management community with the tools they need to control risk and cost, while meeting the evolving needs of investors.”
Blockchain technology is being integrated into operations by global corporations as well as governments at an accelerating rate in the past few years. Earlier this month, the government of Malta announced that it would run its Registry of Companies on a blockchain system. In doing so, it became the world’s first government agency fully run on blockchain.
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