Global funds transaction network Calastone has announced that its blockchain-based Distributed Market Infrastructure (DMI) is now live.
The DMI is designed to allow for cheaper, friction-free trading, settlement, and servicing of funds in real-time. Before the DMI, Calastone used a manual process for settling funds and transactions between buyers, sellers, and distributors amounting to about $217 billion a month.
“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,” said Campbell Brierley, Calastone’s chief innovation officer. “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.”
Calastone estimates the mutual funds industry will save over $4.3 billion per year once it switches over to a blockchain-based system.
Real-time view of registers
The mutual funds network also revealed that it will be ushering in a new service called the Sub-Register to create a “shared, real-time view and history of the registers between trading partners at any point in the distribution chain.”
“By leveraging the latest technology we are able to provide the investment management community with the tools they need to control risk and cost, while meeting the evolving needs of investors,” said Calastone CEO Julien Hammerson.
Calastone has been working on their DMI blockchain platform since as early as 2017. Among the early adopters who put the DMI through its paces before it went live are RBC Investor & Treasury Services, Bravura Solutions, and Seven Investment Management.