Calastone’s initial phase of testing showed the proof-of-concept (PoC) was capable of processing transactions equivalent to a full day’s trading from across its global transaction network.
Calastone said the next phase for the PoC will involve engagement with a number of design partners drawn from its global client base.
The PoC aims to test the feasibility of using blockchain to develop a common global marketplace for the trading and settlement of mutual funds.
Calastone deputy chief executive Ken Tregidgo said the aim of the next phase is to address the business and technical trading challenges faced by its customers across international markets.
“The design partners will help us test the model and understand the business challenges and requirements from a market participant perspective,” Mr Tregidgo said.
Calastone chief information officer Campbell Brierley said, “Placing the market on a blockchain effectively opens the door for potential efficiencies across the whole transaction lifecycle in excess of those that could be achieved via the optimisation of transaction processing alone.
“Successful initial testing, involving a large volume of trades across a fully representative global market universe, has given us a powerful understanding of how to optimise the distributed ledger technology to reduce the frictional cost of trading across the industry on a global scale.”
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