Calastone, a global funds transaction network, has successfully completed the first phase of proof-of-concept (PoC) of its distributed market infrastructure.
The PoC tested the feasibility using blockchain technology in order to develop a common global marketplace for of mutual funds.
“Successful initial testing, involving a large volume of trades across a fully representative global market universe, has given us a powerful understanding of how to optimize the distributed ledger technology to reduce the frictional cost of trading across the industry on a global scale,” Campbell Brierley, Chief Information Officer of Calastone, stated. “The encouraging results of the initial blockchain PoC allow us to look confidently to a future where participants currently connected to the Calastone Transaction Network could seamlessly migrate to this distributed market infrastructure.”
The distributed infrastructure model that was tested, showcased the capability of processing transactions that are equivalent to a full day’s trading, sourced from Calastone global transaction network. This network consists of over 1,200 fund distribution and fund manager clients across 34 markets, the release stated.
“The positive results of our PoC has shown that by using distributed ledger technology across the entire lifecycle of mutual fund transactions, from order placement through to the settlement and payment, industry participants could significantly benefit from simpler processing,” Ken Tregidgo, Calastone Deputy CEO explained.
Following the successful completion of 1st phase, the company also announced the second phase to its PoC, and is now engaged with a number of design partners that are drawn from its global client base.
