The London-based Calastone announced on March 4 that it will be moving to its own blockchain platform.
According to Financial Review, the network would be launched as soon as in May 2019. In the past, the Australian Securities Exchange (ASX) planned to be the first fully blockchain-enabled marketplace in the world. It seems that now it has a competitor.
Calastone Announces Plans to Embrace Blockchain Technology
The British financial solutions company is currently used by fund managers, distributors, platforms and also custodians around the world. If the platform is launched in May 2019, it will beat the ASX that wanted to implement blockchain technology by 2021. The main intention was to launch it before the end of 2020, but the company had to delay the initial deadline.
Calastone is used to manage back-office processes and it is used by 95% of Australia’s managed fund platforms. Moreover, 67% of fund managers use the platform and services provided by Calastone as well.
The blockchain system provided by the company helps digitize order routing, registry services and also trade settlement. The platform is called Distributed Market Infrastructure (DMI) and it can save around $4.5 billion annually for global funds.
Edward Glyn, the head of global client relationship management at Calastone, explained that when they go live they will be the largest financial community that operates on top of distributed ledger technology.
The financial industry around the world has been lagging in terms of innovation. This move made by Calastone shows how important will be for these platforms and financial companies to start implementing blockchain-related solutions for their clients to have better services.
According to the report, with blockchain technology, investors will not have to send computer messages to the database of other investors since all the information can be accessed at any point in time and can be relied on.
Campbell Brierley, the chief innovation officer of Calastone, explained that DLT is modernizing some of the most critical market functions by making it easier and efficient to send messages.
On the matter, Brierley commented:
“We’ve been able to move faster, because Calastone’s technology already automates messaging and reconciliation involved in the trading and reporting of managed funds. Our move to DMI will enable further efficiencies and open up opportunities for future APIs and other capabilities as markets evolve.”
The ASX has been trying to adopt distributed ledger technology since 2015. Last year announced that it was going to be upgrading its services with blockchain technology. With the new system that will replace the old CHESS, they expect to save as much as $23 billion once the solution is finally implemented.
Not only financial companies are starting to use blockchain technology, but there are also other firms that are embracing the technology to become more efficient and offer better services to their clients.