Enterprise Blockchain Firm Digital Asset, ISDA Join Forces to Create Software for Data Standards Adoption
Digital Asset, an enterprise blockchain company, is using their work in the cryptocurrency industry to collaborate with the International Swaps and Derivatives Association (ISDA). In their work together, Digital Asset will be aiding in the development of software that will ultimately make it easier for the ISDA to implement their data standards.
The annoucement of this collaboration was released on Tuesday night, saying that the new reference code library was meant to with the implementation of Common Domain Model (CDM). CDM is meant to be used for trading and managing derivatives, and it is written with smart contract language DAML. Digital Asset is making it possible to open source the code.
Kelly Mathieson, Digital Asset’s head of enterprise solutions at Digital Asset, said that the work with ISDA follows the company’s success at the Barclays DerivHack, which was hosted in London last year. Their “joint goal” with ISDA is focused on “standardizing processes across the derivatives industry.” Mathieson added that the platform is “very excited” to help with the implementation now, which will ultimately help
“financial institutions to be in control of their own data.”
The CDM was first introduced as a concept for ISDA in 2017, meant at the time to standardize the representation of derivative trade events and processes. This standardization ensured that IT systems from various companies and other entities could communicate to reduce the cost and increase efficiency. Barclays, a megabank in the UK, had suggested that the financial sector stands to say $3 billion annually with the CDM project.
CDM is, in no way, singularly specific to the blockchain, but this type of standardization for data is most frequently seen as a prerequisite for distributed ledger technology. Barclays has consistently been a supporter and trailblazer for DLT, and even set up a working group for the efforts of internal CDM adoption last year. By June 2018, a digital representation had been published of the CDM by ISDA, making it possible for members of the association to access it for testing.
The new reference code library with Digital Asset will make it easier to standardize all of the activity that happens in the course of the trade, like the agreement of terms and the amendments that can be made to the contract. In a press release, Digital Asset said that there could be “a number of complex steps.” As an example, the company said,
“[G]enerating payments involves rolling out a calculation schedule and applying date adjustments, before calculating day-count fractions and interest amounts as defined in the ISDA CDM.”
An open-source license will provide access to the reference code library. According to a spokesperson, ISDA has no intention of paying the company for the creation of the reference application.
Digital Asset has much of its popularity as a result of the popularity of former CEO, Blythe Masters from Wall Street. It is also known for the continual work in the replacement of the Australian Securities Exchange’s back-office systems.