Symbiont Partners With Vanguard to Bring Blockchain to Automate Index Data Tracking
Of the many Industries that have taken an interest in blockchain, the finance industry has been one of the most enthusiastic. This has manifested in several firms acceptable crypto as a method of payment and making use of blockchain in the management of financial resources to prevent fraud and so on. Because the financial industry has been so quick to accept blockchain, there are many Innovations being created on a daily basis to further expand its use within the field.
One of the latest developments is coming from Symbiont, who plan to revolutionize the traditional finance world by making use of blockchain in a partnership with, Vanguard a mutual funds giant, in order to automate the index data tracking.
While this partnership is being reported in the media now, Vanguard has apparently been making use of Symbiont’s blockchain product since February to manage data from their benchmark provider CRSP. After a successful trial, Symbiont is now announcing the partnership publicly as they intend to expand uses for blockchain for data-gathering in the finance world.
How This Works
Using the technology provided by CRSP, the blockchain helps to the review index data and improve on how the data is managed. The technology will also help determine the best possible allocation for client funds held by Vanguard. CRSP is their benchmark provider and initially, the data brought forward by CRSP was assessed manually throughout the day as changes to the index data occurred. Now, Vanguard’s information will be distributed through Symbiont’s blockchain platform which means the data will not need to be assessed manually but rather instantaneously
“Consequently, Vanguard has the most current and correct data within their infrastructure without having to go collect the data throughout the day because it’s automatically updated through with the software, through the blockchain technology,”
said Ron Papanek, head of data business at Symbiont.
Before the decision to go public with the partnership has made, Vanguard used the tech since February 2019 and compared the results of both the use of blockchain technology and the traditional manual method. The blockchain method provided more satisfactory results and according to Ppapanek, there was an emphasis on timeliness and accuracy. Because the data was automatically asses rather than by humans, the margin of error was significantly reduced and increase the efficiency also lead to a reduction in cost. Emphasis on efficiency made by Vanguard also made them a suitable partner for this venture.
“They’re pushing the envelope in terms of identifying new, more efficient processes,”
“We have a host of other asset managers that have been trialing our software and looking to participate in this blockchain, a distribution of index data as well. But Vanguard essentially is early on and identifying this opportunity,”
Since this has been made public, Symbiont has stated that while Vanguard is the first major firm to implement this technology to be used on a scale like this, other mutual funds and asset managers are taking notice and some are starting to test out the software and owners are reaching out to make inquiries since the news became public. We could very well be looking at a whole new era in mutual fund management which blockchain plays a significant role.