The world’s largest mutual funds provider
Vanguard is planning to use blockchain for a new foreign exchange platform. The system is aimed at institutional asset managers to enable peer to peer trading. Hence the participants will be able to circumvent the traditional banks and other intermediaries to reduce the cost of currency trades.
The global currency market handles $6 trillion in trades daily. But the challenge for such a project is getting a sufficient number of players on board.
“In theory, it sounds great because you can reduce your costs if you can match directly with someone else who has a countervailing interest,” said Campbell Adams, a former senior currency trader at Deutsche Bank told
Bloomberg.
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