Calastone launches blockchain powered financial services community

Global fintech funds transaction network Calastone has announced the successful launch of its blockchain Distributed Market Infrastructure (DMI).

The technology underpinning Calastone’s network has now been migrated to a blockchain-enabled market infrastructure.

Calastone described the migration of its global network as a “world-first” and said the launch of DMI is a “major step in enabling digitalisation and friction-free trading at a significant global scale.”

Campbell Brierley, chief innovation officer, explained: “Developing the DMI has been a fulfilling journey of innovation and it is incredibly exciting to have completed a world first for the financial services sector.

“Over 1,800 clients across 41 markets are now transacting on the DMI, transforming how fund organisations interact with one another.”

Calastone focus on the digital transformation of money and predict DMI could save the mutual funds market worldwide more than £3.4bn in savings per year because of its role in stripping out costs, operational burdens and risks within the current model.

Furthermore the company claims the launch of its DMI makes it the largest community of global financial services organisations connecting and transacting via distributed ledger technology.

Breierley continued: “Through Calastone’s blockchain-enabled market infrastructure all participants across the fund’s world can work together seamlessly and view trading activity in real-time. Information now ripples instantly across the market, a step change from the previous, fragmented model.

“Financial services firms worldwide can, via the DMI, utilise new services, enhanced capabilities and new investment opportunities, allowing them to evolve their proposition to one that will be more competitive and valuable long-term.”

The firm first found success using blockchain less than two years ago and have continued to develop a common global marketplace for the trading and settlement of funds.

Calastone said it has been engaged with a community of early adopters who have had access to the technology including: RBC Investor & Treasury Services, Bravura Solutions, Seven Investment Management, Multrees and Tilney Investment Management.

Leo Chen, MD and head of Asia, spoke about the impact of virtual banks in the financial sector and how DMI is set to change the entire globals funds industry.

He said: “Financial institutions need to continuously invest in technological improvement to gain a competitive advantage and to seize opportunities as they arise. Only those who can keep up with digital transformation, including advances in blockchain technology, will stay on top of the highly competitive Asian funds industry.”

“The launch of DMI is a significant achievement, evolving Calastone’s proposition in line with the needs of tomorrow – both for fund managers and the new generation of Asian investors.

“I am pleased to now welcome our network of clients onto an infrastructure that is best equipped to meet their needs now, and for the long term.”