Financial technology company Calastone completed the first phase of its blockchain testing by analysing the trades and settlement of mutual funds.
This involved testing a large volume of trades across global markets to give a better understanding of how to best optimise distributed ledger technology, chief information officer Campbell Brierley said.
The proof-of-concept phase found using distributed ledger technology across the entire lifecycle of mutual fund transactions - from order placement through to the settlement and payment - industry participants could significantly benefit from it, deputy chief executive Ken Tregidgo 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," Brierley added.
Calastone also announced it is currently working on the second phase of testing. Tregidgo said this involves collaborating with design partners, testing the model and understanding the business challenges from a market participant perspective.
"It's through technological innovation such as this that we aim to address the business and technical trading challenges faced by our customers across international markets," Tregidgo said.
Established in 2008, Calastone aims to achieve operational cross-border efficiencies in terms of settlement, reconciliations, market data distribution and analytics for the funds management industry.