Northern Trust revealed today it has been discretely running what may be the world’s first functioning private equities blockchain.
Custom built for Switzerland-based management firm Unigestion, the platform was co-developed by Northern Trust and IBM using Hyperledger’s Fabric code base. Notably, the distributed ledger features an active node that is already providing real-time data to a European regulator.
However, the increased transparency and speed are just part of the reason why the bank with $6.7tn assets under custody decided to build the platform.
According to bank president Peter Cherecwich, the most significant business advantage the blockchain solution offers its clients is an accelerated time to market for a new crop of high-tech private equities funds.
The president of Northern Trust’s corporate and institutional services, Cherecwich called the shorter time to market a “huge advantage” for customers.
“The biggest benefit for the clients, and for the ultimate investor, is this whole process will make the time to market for a new fund much faster. Those dollars that are today sitting on the sidelines waiting to be invested will be invested a lot quicker.”
According to the parties involved, development on the blockchain implementation started last year when Northern Trust contacted
Read more ... source: CoinDesk
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