TECHNOLOGY

FinTech firm unveils blockchain model for capital markets

London based FinTech firm EquiChain has revealed plans for a blockchain prototype for capital markets with an emphasis on emerging and frontier markets.

By Paul Walsh paul.walsh@strategic-i.com February 13, 2017 11:05 AM GMT
EquiChain has unveiled its working blockchain prototype for capital markets with the intention of implementing a full end-to-end ‘execution to custody’ pilot in 2017.

The project will pay special focus on increasing the investment viability of emerging and frontier markets, starting with the Middle East, having received support from the Abu Dhabi Global Market, Bahrain Bourse and Qatar Stock Exchange.

In addition, the group has added a number of industry veterans to its board including former group CEO at Standard Chartered Peter Sands as well as Hugh Madden, co-founder of blockchain provider ANX International.

“The hype phase of blockchain is over. Now it’s time to deploy workable solutions that deliver tangible business benefits,” said Sands.

Markus Ruetimann, former group chief operating officer at Schroders is also joining the project as senior advisor.

“Accessing frontier and emerging markets poses many operational challenges,” said Ruetimann.

“EquiChain's solutions will make investing, trade tracking and data flows much more efficient and robust. This will make these markets more accessible for investment, whilst reinforcing local infrastructure.”

As part of the pilot venture EquiChain has also established two working groups focusing on institutional investor as well as market infrastructure.

The market groups will aim to ensure effective deployment of the technology as well as ensuring regulatory compliance.

“The current securities transaction lifecycle is complex, costly, time-consuming and fraught with risk,” said Nicholas Bone, founder and CEO at EquiChain.

“EquiChain will use DLT to redefine securities transaction flows creating a full ‘execution to custody’ capability.

“Blockchain is particularly relevant for emerging and frontier markets, which are often perceived by foreign investors as being higher risk, while typically having less cumbersome existing infrastructure to accommodate,” said Bone.