The banking and financial institutions across the world have been working on development and implementation of blockchain technology based applications into their operations. The latest news about a successful trial run of a similar blockchain technology based solution comes from AXONI.
In a recent press release, AXONI, a distributed ledger based financial technology solutions provider has reported that the company along with 6 other financial services providers has successfully tested the implementation of a blockchain technology and smart contracts based solutions. This blockchain based smart contracts solution is designed specifically to manage and address the post-trade lifecycle events associated with the standard North American single name Credit Default Swaps or CDS.
AXONI has conducted the trial with the likes of the Bank of America Merrill Lynch , Credit Suisse , Citi Group , The Depository Trust and Clearing Corporation (DTCC) , JP Morgan and Markit . The trial clearly demonstrated the capability of blockchain technology when it comes to handling various complex processes associated with CDS. By using AXONI’s solution, they were able to manage amendments, compressions, novation’s and payments flawlessly over the distributed blockchain network.
This is neither the first nor the last of such trials to be conducted by different fintech companies as they try to integrate Bitcoin’s underlying technology into their operations. While each deployment varies depending upon the specific requirements of a particular company, group or sector, they all work based on the same fundamental principles as cryptocurrency’s distributed ledgers. The Credit Default Swap segment was considered for the trial due the abundance of pre-existing data and the well-established benchmarks, courtesy of the Depository Trust & Clearing Corporation’s Trade Information Warehouse.
In order to begin the test, the CDS trade confirmation data was first entered onto the blockchain. The data was stored on the blockchain in the form of […]
