Calastone, the largest global funds transaction network, has successfully migrated its network of 1,800 customers on its blockchain-enabled Distributed Market Infrastructure.
The network, spread across 41 countries will enable friction-free trading, striping out cost, risk and operation inefficiencies according to the group.
In Australia alone, Calastone has over 220 fund managers across 40 platforms all of which can now connect and transact via the distributed ledger technology.
The group has forecast a savings of £3.4 billion in savings per year for the mutual funds market worldwide as a result of the migration.
Calastone’s chief innovation officer Campbell Brierley said the two-year long journey since the first phase had been an exciting adventure.
“Developing the DMI has been a fulfilling journey of innovation and it is incredibly exciting to have completed a world-first for the financial services sector,” he said.
Participants across the fund’s network can now view trading activity in real time and via the DMI will be able to utilize new services and investment opportunities.
Calastone has launched a new service to go with the DMI called sub-register, which creates a shared, real-time view and history of the registers between trading partners at any point in the distribution chain.
Chief executive officer of Calastone Julien Hammerson said investors expected increased returns without cost pressures and this was a tool to help them achieve that.
“Since we launched in 2008, our vision has been to use innovative technology to create a friction-free funds market and reduce the overall cost of trading for all market participants.
“Today more than ever, investors expect increased returns, greater access and transparency, at a time when the funds industry feels the effect of growing cost pressures,” said Mr Hammerson.
