Firms launch trial of blockchain for data management

by CDW Financial Services|Oct 3, 2016

Blockchain continues to be a topic of hot interest for capital markets firms and the financial services industry, but how and when blockchain will be put into place across the industry is still up for much debate. This week’s FIN News Alert looks at the CoinDesk article, “7 Financial Firms Test Blockchain for Data Management,” and highlights how several institutions are exploring data management possibilities with blockchain. Here are some more details:

  • Credit Suisse, Citi and HSBC are among seven financial firms to participate in a data management trial being conducted with support from blockchain firms Axoni and R3CEV.
  • Featuring buy-side and sell-side firms, the multi-month effort envisioned how a distributed ledger prototype could be built to enhance risk management and address cost and efficiency issues when managing financial reference data.
  • Also involved was the Securities Industry and Financial Markets Association (SIFMA), a trade group representing U.S. securities firms.
  • According to a release, the prototype usedAxoni Core — the startup’s proprietary distributed ledger software — to simulate the collaborative management of reference data used in corporate bond issuance.
  • The project was able to demonstrate how regulators and network participants can use the technology to see which parties on a ledger have created, issued or proposed amendments to a data record.

Looking for more background on blockchain? Our infographic gives a quick primer on the state of blockchain and the benefits it can provide to your bank, credit union, capital markets firm or insurance organization.