Post-trade infrastructure operator SIX Securities Services has announced a partnership with blockchain provider Digital Asset Holdings. The two firms plan to develop a blockchain-based proof-of-concept, demonstrating its commercial viability.
SIX Securities and Digital Asset Bring Blockchain to the Swiss Financial Landscape
SIX Securities is one of Europe’s leading post-trade service providers. Based in Switzerland, the firm focuses on clearing, settlement, and collateral management for clients in 65 markets globally.
By collaborating with Digital Asset, the two companies will create a roadmap for a whole-market infrastructure value chain.
The post-trade infrastructure company is a firm believer in blockchain technology. Furthermore, it believes the technology can process settlements more efficiently and insert processing tools into existing securities transaction flows. If successful, the two firms’ roadmap will extend to a “production-ready service.”
Blythe Masters, Digital Asset Holdings CEO, explained how the partnership could produce real world results, stating:
Partnering with SIX brings this cutting edge technology another step closer to commercial reality. We believe this collaboration will provide exciting opportunities for SIX and its customers while reducing inefficiency, cost and risk in the financial services ecosystem.
Segregated Processes Better Streamlined With Blockchain Tech
SIX Securities says once the company’s goals are complete it could be a great solution for Swiss financial markets.
The initial phase will build and incorporate the technology in a “distributed and encrypted way.” It will deliver faster run times and increased security, using a blockchain platform.
Post-trade settlements include those where buyers and sellers trade details, transact, and change ownership of money or securities. Often, the entire settlement process from beginning to end can take three business days or more. At the same time as enhancing post-trade immutability, Blockchain technology can improve efficiency by operating in real-time.
In time, SIX Securities Services envisions blockchains transforming the post-trade ecosystem globally. Thomas Zeeb, Division CEO of SIX Securities Services, said distributed ledger tech is key to the company’s daily operations. “We need to understand it and, more importantly, its applicability and future flexibility in order to keep ahead of the game,” Zeeb added.
Digital Asset has also been developing the product for future possibilities, and believes there is a vast array of potential use cases for SIX. The prototype will demonstrate how current “segregated processes” can be more streamlined, and made far more efficient.
SIX’s Blockchain Prototype Will Be Showcased During Sibos In Geneva
The Swiss firm said it has already made considerable efforts to explore blockchains. For example, SIX has a prototype for Corporate Actions processing and will be displaying the product at Sibos, in Geneva, this October.
The firm will not be the only blockchain project showcasing its technology, as Accenture will also be revealing its “editable” distributed ledger at the Sibos event.
Blockchain technology is sweeping the world. SIX Securities thinks its comprehensive range of services can use the protocol to bring great benefits. Additionally, the company is owned by its users — approximately 140 banks. SIX’s mixture of legacy financial institutions believes they are the ones who will get the best of what a blockchain has to offer.
What do you think about SIX Securities teaming up with Digital Asset Holdings? Let us know in the comments below.
Images via Shutterstock, and SIX Securities Services Webpage.
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