DTCC’s platform keeps track of the security throughout the lifecycle of the associated bond. Blockchain can simplify the process by automatically maintaining a shared electronic record of the security which is visible to all relevant parties.
The decision to implement the technology follows a test conducted by DTCC and banks in 2016 which proved some of the advantages of using blockchain, said Michael Bodson, president and chief executive officer of DTCC.
Currently, the platform processes USD 11 trillion worth of credit default swaps, as Wall Street intensifies efforts to take advantage of the emerging technology. IBM, Axoni, and R3 CEV, two technology startups have been selected to work on the project which is set to kick-off in January 2017, DTCC said for Reuters. It expects the new blockchain-enabled Trade Information Warehouse to go live in early 2018.
Furthermore, the project has been developed with input from market participants and infrastructure providers including Barclays, Citigroup, Credit Suisse Group, Deutsche Bank, JPMorgan Chase, UBS Group, Wells Fargo, IHS Markit and Intercontinental Exchange, DTCC said.
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