Digital Securities Startup Archax to Use R3’s Blockchain for Post-Trade Activities

Digital securities exchange Archax has entered a new deal to utilize blockchain firm R3’s Corda Enterprise solution for handling post-trade activities on its trade.

Announced on October 18, Corda Enterprise was selected for mopping up trades utilizing distributed ledger technology to “reduce friction in the post-trade process.” Post-trade activities usually incorporate the changing of proprietorship records, transfer of securities and cash to settle the trade, and reporting.

Based in London and established in 2018, Archax’s front-end trade transactions will stay “blockchain agnostic,” the company stated, but a private, permissioned form of Corda was required for managing information following trades.

“The current post-trade process in traditional financial markets is hugely inefficient, with many intermediaries involved,” Graham Rodford, CEO of Archax, said in a statement. “This partnership … [will] remove friction and streamline activities to improve efficiency and reduce cost.”

The company added that its request to facilitate a multilateral trading facility (MTF) in London is being evaluated by the Financial Conduct Authority.

The collaboration comes following R3’s sales veteran Cathy Minter as chief revenue officer to increase the business adoption of R3’s Corda Enterprise. At the time, Minter disclosed that the enterprise blockchain company was seeing numerous inquiries in spite of industry-wide expectations for a 60 percent decrease in 2019 sector investment flows.