Interdealer broker ICAP announced today that it has completed an internal blockchain technology trial focused on securities post-trade processes.
The UK-based firm said that the test involved the use of a multi-asset messaging and matching network called Harmony, from which messages were converted, in real time, to smart contracts built on a blockchain.
ICAP explained:
The company said that the test results showed how blockchain technology can improve the security and accuracy of data flows in the post-trade environment, as well as cut back-office costs.
"In successfully completing a proof of technology test, ICAP has demonstrated one of the first real world applications of distributed ledger technology that has the ability to significantly transform the post trade landscape," Jenny Knott, CEO of ICAP’s post trade division, said in a statement.
The trial is the latest effort to demonstrate how blockchain tech could be applied to post-trade processes, during which transactions are approved and the assets and cash involved are exchanged between the parties after a trade has taken place.
Firms like Japanese bank Mizuho and regulators such as the European Securities and Markets Authority (ESMA) have recently conducted work in this area. Last fall, a group of companies including the London Stock Exchange, Société Générale and UBS formed a working group specifically focused on post-trade applications of the technology.
This article has been updated.
Image via Shutterstock
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.