An investment industry trade group based in Ireland has completed a blockchain proof-of-concept aimed at streamlining regulatory reporting.
Irish Funds announced the end of the trial today, conducted at Deloitte's Dublin-based blockchain lab. The test, which began early last month, featured Deutsche Bank, Metzler, Northern Trust and State Street as participants.
Dubbed "RegChain", the pilot utilized technology from ethereum and the InterPlanetary File System (IPFS) to track and analyze transactions, then organize the data into completed financial statements to then be viewed by the relevant regulatory agencies.
The test sought to create a platform for developing Money Market & Investment Funds returns, the reporting format for investment funds in Ireland. According to Irish Funds, it showed that this process can be streamlined to become more efficient, enabling the exchange of transaction data with relevant parties, including regulators.
Irish Funds CEO Pat Lardner said that the organization would pursue additional research into the area, calling the test "an important first step" in that broader process.
Lardner said of the test:
"The successful completion of this project is an important first step in demonstrating the power of blockchain for regulatory reporting and industry collaboration around innovation. This foundation will enable additional development and progress to be made with other key stakeholders and confirms Ireland’s place a leading location for FinTech globally."
The trial is the latest from Ireland's financial space centered on regulation.
In April 2016, the Bank of Ireland, one of the country's "Big Four" banks, developed a prototype centered on trade reporting. Working with Deloitte, the Bank of Ireland used the tech to create a visible platform used for monitoring clients' trading activities.
Speaking about the test after the fact, bank representatives said that blockchain could help them reduce up their regulatory burdens by creating more effective channels for capturing data.
Image via Shutterstock