Calastone adopts blockchain

Calastone announced its global transaction network is migrating fully to blockchain-enabled infrastructure.

Technology underpinning Calastone's core network will transition to a private and permissioned-based blockchain infrastructure in 2019, the company announced.

The new technology will enable the mutual funds market to operate more efficiently, reduce costs and risks, and responded quicker to evolving customer demands, it said.

Calastone completed the first phase of its blockchain testing in June, analysing trade order placements and settlement of mutual funds.

The proof of concept stage was able to determine the volume of transactions processed was "many times greater" than what is currently available, the company said.

At the time, chief information officer Campbell Brierley said this involved testing a large volume of trades across global markets to give a better understanding of how to best optimise distributed ledger technology.

Deputy chief executive Ken Tregidgo said whilst the potential for long-term change is great, the migration path for customers to take advantage of the future infrastructure will remain seamless, enabling clients to move when they are ready.

"A blockchain-enabled marketplace means alleviating operational inefficiencies, increasing performance and generating greater savings - a win-win for everybody," he added.

"The initial shift we're making towards blockchain marks the first major step to addressing these issues offering significant potential for the entire industry."

Calastone chief executive Julien Hammerson said: "Our vision remains to work with the industry to reduce the overall total cost of ownership by making it friction-free and increasing value for all market participants."

As the funds management sector faces increasing costs, operational and regulatory pressures, and the imminent introduction of MiFID II, blockchain can provide much needed relief to reduce costs, and deliver friction-free trading and regulatory transparency, Hammerson said.

Calastone's network has more than 1300 financial service organisations across 34 global markets processing over £80 billion ($141 billion) of trades monthly.

Read more: CalastoneCampbell BrierleyJulien HammersonKen Tregidgo
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