Calastone, the world’s largest fund trading network, has successfully migrated its network of 1,800 clients to its blockchain-enabled distributed market infrastructure.
The network, spread across 41 countries, will enable frictionless exchanges, eliminating costs, risks and operational inefficiencies according to the group.
In Australia alone, Calastone has more than 220 fund managers across 40 platforms, all of whom can now connect and transact via distributed ledger technology.
The group predicts a saving of £3.4 billion a year for the global mutual fund market through the migration.
Campbell Brierley, Calastone’s chief innovation officer, said the two-year journey since the first phase had been an exciting adventure.
“Developing the DMI has been a rewarding journey of innovation and it’s incredibly exciting to have achieved a world first for the financial services industry,” he said.
Participants in the fund’s network can now view trading activity in real time and, through the DMI, will be able to use new services and investment opportunities.
Calastone has launched a new service to accompany the DMI called Sub-Register, which creates a real-time shared view and history of records between trading partners at any point in the distribution chain.
Calastone CEO Julien Hammerson said investors expected increased returns without cost pressures and this was a tool to help them achieve that.
“Since our launch in 2008, our vision has been to use innovative technology to create a frictionless funds marketplace and reduce the overall cost of transactions for all market participants.
“Now more than ever, investors are expecting increased returns, better access and greater transparency, at a time when the funds industry is feeling the impact of growing cost pressures,” Mr Hammerson said.
