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
Whitebox Advisors chooses Broadridge suite solution
17 August 2017 | New York | Reporter: Drew Nicol
Whitebox Advisors has mandated Broadridge Financial Solutions to transform its technology platform into a fully integrated, hedge fund operation
CloudMargin unveils microsite for OTC derivatives
15 August 2017 | London | Reporter: Jenna Lomax
The new microsite, designed by UK-based design agency Eight Arms, was created to help financial institutions globally become accustomed to the new margin rules and other regulations affecting their collateral management functions
NEX Group launches new solution to deal with EMIR
10 August 2017 | London | Reporter: Jenna Lomax
NEX Group has launched a solution that enables compliance with revisions to the European Market Infrastructure Regulation
LCH and Euronext secures 10-year deal on derivatives clearing
08 August 2017 | Paris | Reporter: Jenna Lomax
The deal allows for clearing services for listed financial and commodity derivatives for the next 10 years between the two companies
Lombard Risk and Elixium have teamed up to improve repo trading and collateral management capabilities
AcadiaSoft launches new consultancy service to tackle margin calls
02 August 2017 | New York | Reporter: Jenna Lomax
Its first release under the AcadiaSoft Expert Service programme will be ISDA SIMM Approval Guidance, which will help with obtaining permission from regulators to use the ISDA SIMM for initial margin calculations
Optimas Capital opts for Broadridge investment management solution
01 August 2017 | New York | Reporter: Jenna Lomax
Optimas Capital, which has more than USD 250 million in assets under management, chose Broadridge’s Portfolio Master solution for its “accurate and smooth processing capability"