13 February 2017
Hong Kong
Reporter: Stephanie Palmer

Blockchain capital markets prototype launched


EquiChain has released a working prototype of its blockchain solution for global capital markets, with plans to implement a full end-to-end custody pilot this year.

The infrastructure platform is intended to drive efficiency and improve global investor access in emerging and frontier markets through distributed ledger technology (DLT).

It consolidates the functions of the asset manager, custodian, broker, exchange and central securities depository, allowing for direct interaction and exchange of value between participants.

Hugh Madden, CTO of EquiChain, explained: “EquiChain’s use of cryptographic signatures reduces counterparty risk and prevents fraud, making blockchain-based transfers safer than other alternatives.”

EquiChain has also announced the closing of its initial round of funding, secured from board members, advisors and close stakeholders, and established two industry working groups.

One group will be focused on institutional investors, and the other will work on market infrastructure. They will bring together thought leaders, helping the platform to develop while embracing current and future regulatory requirements.

Nicholas Bone, founder and CEO of EquiChain, said: “The current securities transaction lifecycle is complex, costly, time-consuming and fraught with risk. EquiChain will use DLT to redefine securities transaction flows creating a full ‘execution-to-custody’ capability.”

He added: “Blockchain is particularly relevant for emerging and frontier markets, which are often perceived by foreign investors as being higher risk, while typically having less cumbersome existing infrastructure to accommodate. DLT gives such markets the opportunity to leapfrog existing solutions to deliver greater efficiency, liquidity and ease of access.”

Markus Ruetimann, senior advisor to the EquiChain board, commented: “Accessing frontier and emerging markets poses many operational challenges. EquiChain's solutions will make investing, trade tracking and data flows much more efficient and robust. This will make these markets more accessible for investment, whilst reinforcing local infrastructure.”

More technology news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Clearstream and dwpbank sign T2S agreement
16 October 2017 | Luxembourg | Reporter: Jenna Lomax
Though the length of contract has not been disclosed, the partnership will provide dwpbank with centralised access to the T2S market via a single platform
NEX Group launches cash and collateral movement tool
10 October 2017 | London | Reporter: Jenna Lomax
Through the partnership between NEX Optimisation and NEX Markets, Pivot connects the ENSO Core platform with NEX Treasury
S3 Partners upgrades short selling data app
02 October 2017 | New York | Reporter: Drew Nicol
Black App is expanding with additional campaigns planned for the US and new roll outs upcoming for both Europe and Asia
IHS Markit and Pirum sign up first SFTR clients
02 October 2017 | London | Reporter: Jenna Lomax
BNY Mellon, Brown Brothers Harriman, Deutsche Bank Agency Lending, eSecLending, J.P. Morgan and Rabobank will all act as users and design partners for the solution
BNY Mellon and Hazeltree team up
29 September 2017 | New York | Reporter: Jenna Lomax
Through the solution, clients will be able to access BNY Mellon’s full suite of cash, treasury and custody services through Hazeltree’s treasury management technology
IHS Markit and MSCI partner for liquidity risk solution
27 September 2017 | New York | Reporter: Jenna Lomax
The multi-asset class solution will integrate fixed income market and liquidity data from IHS Markit with MSCI LiquidityMetrics analytics
Wematch.SecuritiesFinancing completes first securities lending trade
19 September 2017 | London | Reporter: Drew Nicol
The counterparties of the first trade were Bank of America Merrill Lynch and ABN Amro, dealing in French equities