Archax Securities Exchange To Use R3 Blockchain Technology For Post-Trade Records and Reporting
Archax, a digital securities exchange platform, has started a new partnership with the R3 consortium to use its Corda Enterprise technology. With the help of the blockchain created by the R3, the company will handle the post-trade activities on its platform.
The reason why Corda Enterprise was chosen was that it was powered by the blockchain and it was able to greatly reduce friction in the post-trade process. The blockchain is considered a good fit for this because post-trade processes include transferring ownership records, securities and cash. All these transfers can have their efficiency enhanced by using a decentralized system.
Archax was originally founded last year in London. While the CEO of the company, Graham Rodford, is still “agnostic” about the blockchain in the front-end of trades, he determined that not using this technology post-trades is simply a bad idea.
According to him, the partnership with R3 will be important because it will drastically reduce costs and the time that it takes for the whole process. The current system used in the financial markets is hugely inefficient, but now some solutions for it are appearing.
From R3’s side, it is also no surprise that the company is starting more partnerships right now. Cathy Minter was recently hired as the Chief Revenue Officer of the company in order to boost its adoption. Some weeks ago, Minter affirmed that more and more people showed up at the company because they were interested in their blockchain solutions.