EquiChain, a London-based fintech company, is in discussions with regulators to launch a pilot in emerging markets this year for end-to-end execution to custody using distributed ledger technology.
Nicholas Bone, founder and chief executive of EquiChain, said that that the firm is different from other DLT, or Blockchain, initiatives because it is working with regulators and it has focus on emerging markets.
“We are having a number of conversations with regulators as developing international standards for Blockchain is important in capital markets,” Bone added.
The International Organization of Securities Commissions warned in a report last week that the numerous Blockchain networks being developed need to communicate and operate with each other. Iosco said in a Research Report on Financial Technology that a large number of Blockchain proofs of concept are ongoing and even if they are successful, implementation in the securities markets may raise technological, operational, business and regulatory challenges including interoperability between different networks.
“In the potential area of application for post-trading settlement, it will be important to ensure interoperability among the systems of all current market participants (brokers, issuers, investors, trading venues and financial market infrastructure operators),” added Iosco. “It is also essential for different DLT networks to communicate and operate with each other.”
Bone continued that EquiChain will be able to work with any Blockchain protocol such as Hyperledger, Ripple or Corda.
Hyperledger is hosted by the Linux Foundation as an open source project for cross-industry Blockchain technologies; Ripple is an interbank rules-based Blockchain payments network while Corda has been developed as a Blockchain for use by regulated financial institutions by the R3 consortium, which has more than 70 members.
“We don’t want to get into a Betamax versus VHS situation,” added Bone, referring to the fight between different proprietary formats for home video recorders.
Hugh Madden, co-founder of Blockchain solutions provider ANX International, is EquiChain’s chief technology officer. He told Markets Media that EquiChain is working with a select group of institutions and regulators and chose to focus on emerging markets where there is less existing infrastructure, and so more incentive for change.
Equichain has an Asia regional office in Hong Kong and will begin in the Middle East with support from the Abu Dhabi Global Market, Bahrain Bourse and Qatar Stock Exchange. Asset managers such as Henderson Global Investors and Legal & General Investment Management are also supporters.
“We are working with people who want to move to Blockchain and redefine the post-trade architecture with the blessing of regulators,” said Madden. “For a fintech firm there is no easier time to engage with regulators as there has been a proliferation of sandboxes to allow testing.”
For example, the UK’s Financial Conduct Authority launched a sandbox in 2015 to allow businesses to test innovative products, services, business models and delivery mechanisms in a live environment and make it cheaper and quicker for fintech firms to meet regulatory requirements and go live.
Bone said EquiChain will initially focus on equities. “Once that is 90%
“Once that is 90% completed, then there is synergy to digitise other asset classes,” he added.
Blockchain has the potential to radically decrease post-trade costs through the use of a trusted centralised ledger which can be updated in near real-time, removing the need for numerous intermediaries between the counterparties of a trade.
For example, EquiChain’s working prototype is a hybrid system which consolidates the currently siloed functions of a securities transaction such as an asset manager, custodian, broker, exchange and central securities depository. Madden said: “EquiChain’s use of cryptographic signatures reduces counterparty risk and prevents fraud, making Blockchain-based transfers safer than other alternatives.”
Equichain also said today it has closed its initial funding round, secured from its board members, advisors and close stakeholders. The firm’s advisory board includes Peter Sands, former group chief executive of Standard Chartered; Markus Ruetimann, former group chief operating officer of Schroders and Sonia Rossetti, chair of SWIFT UK National Member Group and SWIFT UK board chair.
The Post-Trade Distributed Ledger Group of nearly 40 financial institutions and market infrastructures said in a report today that 48% of members believe Blockchain will be adopted in the financial post-trade area in three to five years. However, 21% also said adoption will take more than five years.
Jörn Tobias, managing director at State Street and PTDL group representative, said in a statement:
“The big barrier to growth, however, is seen as caution: fears over adoption and hesitation about embracing what remains cutting-edge technology. This is a core focus for the PTDL Group – engaging with financial services firms, technology companies and other stakeholders and helping catalyse adoption across the world for the benefit of all parties the financial post-trade area.”
- AB-CHAIN’s Cryptocurrency Makes Advertising Easy - September 25, 2017
- Gibraltar Jumps on Regulatory Bandwagon – Issues Consumer Warning on ICOs – Token Sales – But Gives Green Light - September 24, 2017
- From the Creator of ICOs – J.R. Willett Designs Uptoken – To Accelerate Expansion Of Global Crypto ATM Network - September 23, 2017
- Art Provenance Platform ARTEX Launching Token Sale - September 23, 2017
- Students Train for Blockchain Jobs at Coding and Cryptocurrencies Summer Course in Greece - September 23, 2017
- Central Banks are Trialling Blockchain, Cambridge Study Shows - September 23, 2017
- Blockchain Conquering Esports Industry - September 22, 2017
- Russian-based Startup LavkaLavka Plan to Disrupt Global Eco Farming and Organic Food Retail Sector with BioCoin - September 22, 2017
- Slack Out, Rocket.chat In – Blockchain Community Leaders Aragon Lead Industry Exodus Amid Marked Increase In Phishing Scams - September 22, 2017
- Swiss Supply Chain Startup AMBROSUS Launches Token Generation Event - September 22, 2017
- Codemojo (Backed by PayPal Incubator) is launching its ICO to Mobilize $360 Bn worth of Reward Points Globally - September 22, 2017
- Investment into Blockchain start-ups set to hit $3bn in 2017 - September 22, 2017
- Opporty Announces ICO and Token Sale Starting October 18th 2017 - September 21, 2017
- Medicalchain To Speak At The Upcoming Financial Times Digital Health Summit On Oct. 12, 2017 - September 21, 2017
- Adel Will Upgrade Its Blockchain Incubator Using Jelurida’s Latest Technology - September 21, 2017
- Etch Foundation Announce Token Sale - September 21, 2017
- Jamie Foxx dives into cryptocurrency – invests in COBINHOOD - September 21, 2017
- New Creditinfo App and Services Utilize Blockchain-Based ShoCard Identity Platform to Maximize User Privacy while Authenticating Credit Report Data - September 21, 2017
- Disruptive Truck-Sharing Company Doft Sells Doftcoins to Truckers, 3PLs and Freight Shippers with 50% discount during Pre-ICO - September 21, 2017
- Carnegie Mellon University and BitClave partner to improve the search experience - September 21, 2017
- Darfchain Successfully Implements Its Distributed Erp System Encompassing Odoo, Bigchaindb And Ethereum Technology - September 21, 2017
- ASX-Listed iCandy Interactive Limited Announces Backing For Independent Blockchain Based Crypto-Currency “Project Nitro” To Support And Democratize Game Development - September 21, 2017
- Ethereum Co-founder Anthony Di Iorio Joins BlockMason as Advisor - September 20, 2017
- Nuggets Announces Token Sale for Revolutionary Blockchain Platform for Secure Private Payments and ID Verification - September 20, 2017
- Preeminent Investor & CNBC Contributor BRIAN KELLY Joins Veridium Labs Board of Advisors - September 20, 2017
- Dragonchain, Originally Developed at Disney, Announces October 2nd Token Sale To Bring The Power Of Blockchain Technology To Business - September 20, 2017
- Social Payments App Moneymailme Announces Development Of A New Blockchain Platform Called Modex Marketplace - September 20, 2017
- Blockchain-Fuelled Public Opinion Poll Startup ClearPoll Announce Presale - September 20, 2017
- SmartOne Launches Legal Solution for Crypto Community – Announce LEGAL Tokens - September 19, 2017
- HydroMiner Announces ICO and First Token Sale Starting September 25th 2017 - September 19, 2017
- LEVERJ AnnouncesFully Functional, Non-Custodial Cryptocurrency Derivatives Trading Platform - September 19, 2017
- DataBroker DAO, a Decentralised Marketplace for IoT Sensor Data, Token Sale Is Live - September 19, 2017
- Poseidon Brings Value To Nature Through Carbon Blockchain Technology - September 19, 2017
- Options and Futures on the Blockchain Board of Derivatives. PRE-SALE begins on 22th September at 8AM GMT. - September 18, 2017
- Blockchain-based Digital Advertising Ecosystem Papyrus to Launch Token Generation Event on 12 October - September 18, 2017
- Propy Raises $15 Million in ICO to Decentralize Real Estate Sales and Attract Foreign Investors - September 18, 2017
- The Financial Commission Issues Certification of the Genesis Vision ICO - September 18, 2017
- Blockchain Industry and Regulatory Leaders Launch Token Alliance - September 18, 2017
- PayPie Challenges Experian, Equifax and TransUnion Status Quo with the World’s First Ethereum Blockchain-Based Credit Risk Assessment - September 18, 2017
- YouNow Announces the PROPS Ecosystem, Brings Cryptocurrency to Mobile Video - September 18, 2017
- Dash Grows in Accessibility; Listed on London Digital Asset Exchange and Broker Dash partners with CEX.IO - September 18, 2017
- Qtum Ignition Tackles Scalability with First Decentralized Governance Protocol - September 18, 2017
- The Grant Hero Foundation Aims to Disrupt the Non-Profit Industry with the GIVE Coin Using Ethereum Blockchain Technology - September 18, 2017
- Trippki Announces Hotel Booking and Rewards Platform to Simplify & Monetize Traveling - September 18, 2017
- Democratic Cryptocurrency Exchange Mandarin.top launches ICO - September 18, 2017
- Talla Launches Botchain, a Blockchain-Based Platform for Ensuring Certainty and Security in A.I. Autonomous Agents for Business - September 18, 2017
- NXT Blockchain Announces Big Changes for Voting, Money Transfer and More - September 17, 2017
- Swirlds Raises $3M Seed Round to Bring Improved Performance, Security to Distributed Ledger Applications - September 17, 2017
- ICOBox Token Sale Tops 3933 BTC For New and Existing ICOs - September 17, 2017
- 21 Thousand People Contribute To Kybernetwork As Company Reports ‘Smooth’ ICO - September 16, 2017