Today Calastone
announced the launch of its Distributed Market Infrastructure (DMI) which uses blockchain to help its 1,800 clients manage transactions for the mutual fund sector. The UK company estimates that blockchain can save the industry £3.4 billion ($4.3 billion). It has migrated the technology that underpins its network, so the company claims its the largest use of distributed ledger technology (DLT) in the financial services sector. Calastone processes £170 billion ($218 billion) in transactions monthly.
The Mutual Funds industry involves retail investors, brokers or intermediaries, asset managers and their administrators. Trades are still sometimes emailed or faxed, and there’s a lot of manual reconciliation.
Calastone was set up more than 11 years ago to help to automate trades and integrates ten different networks over which funds can be purchased. So it receives data in the client’s chosen format, normalizes it, and translates the data to another format for the counterparty. Before blockchain, the automation involved connecting silos of data using many technical messaging standards such as FIX and SWIFT. Messaging will continue to be supported.
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