David Rutter, enterprise blockchain firm R3’s CEO, has started a corporate bond technology venture. LedgerEdge is building a platform and ecosystem for secondary trading in the corporate bond market. According to the firm, $59bn is traded daily with less than a third traded electronically.
The new solution aims to improve market liquidity by addressing market inefficiencies as well as weaknesses in current solutions. It will shift away from a centralized store of data and avoid data leakage. Unsurprisingly it plans to use blockchain technology, artificial intelligence and secure enclave computing, which addresses the leakage issue.
“The secondary market for corporate bonds is growing and is ripe for an evolution, but existing platforms are not fit for purpose,” said Rutter. “Data is monetised by platforms and it is leaked across fragmented, opaque markets, decreasing execution quality. Working with the industry, we will build a platform that solves the challenges of locating and promoting liquidity and data ownership once and for all.”
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