Calastone to Move Over 1,700 Companies to Blockchain

Calastone, a fund transaction network operator, announced on Monday that it would be migrating its client base to the blockchain in May of next year. A statement released by the firm indicates that it is describing its new system as Distributed Market Infrastructure (DMI).

"The launch of our DMI marks an exciting step for the industry in accelerating the digitisation of the funds sector and is a significant achievement for Calastone," said company CEO Julien Hammerson. "The migration of our global network is the culmination of years of hard work and continued investment in innovation."

The shift to that DMI will be quite an undertaking. According to Calastone, the company will be shifting more than 1,700 companies, operating in 40 different markets, to the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term.

Calastone CIO: Blockchain Will Reduce Friction Points

When it goes live next May, companies using the DMI will be able to connect with buyers and sellers and perform transactions. Calastone claims that in doing so, they will also be reducing risks that were inherent to their old network.

"All participants benefit through the real-time view of each record and powerfully, from a data perspective, a single version of the truth," said Campbell Brierley, Calastone’s Chief Innovation Officer. "Instantly this alleviates common friction points that exist today, including areas such as reconciliation and Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term, which are resolved automatically with all transactions being performed in the same environment."

Aside from reducing risks, Calastone has also said that it believes a move to the blockchain could significantly reduce costs. The firm said that the cost of fund distribution could be reduced by as much as £3.4 billion ($4.33 billion) if there is wide adoption of the technology.

Calastone is not the only trading infrastructure provider to start using the blockchain. Last week, settlements service provider CLS announced that its blockchain-based payments service had gone live, with Morgan Stanley and JP Morgan using the solution.