London-based FinTech firm, EquiChain, is preparing a pilot of its newly established ‘execution-to-custody’ blockchain platform this year.
The company - which is supported by the likes of Henderson Global Investors and Legal & General Investment Management - has established two industry working groups for the development of the platform.
One group will focus on institutional investors and the other will concentrate on market infrastructure to “ensure an effective and considered development of the platform while embracing current and future regulatory requirements,” EquiChain said.
Founder and chief executive officer, Nicholas Bone, explained the current securities transaction lifecycle is complex, costly, time-consuming and fraught with risk.
“EquiChain will use DLT to redefine securities transaction flows creating a full ‘execution to custody’ capability… To the best of our knowledge EquiChain is the most developed solution bringing the benefits of DLT to capital markets,” he said.
The platform is described as having a verifiable, transparent and immutable flow of information, enabling direct interaction and the streamlining of market processes.
“EquiChain’s innovation will catalyse industry collaboration to define a new capital markets operating model,” the firm added.
Former chief executive officer at Standard Chartered, Peter Sands, and former chief operating officer at Schroders, Markus Ruetimann, are board members at EquiChain.
Sands explained the “hype phase of blockchain is over. Now it’s time to deploy workable solutions that deliver tangible business benefits.”
Ruetimann added EquiChain’s platform will make investing, trade tracking and data flows more efficient and robust.
EquiChain also announced Hugh Madden, former chief technology officer at blockchain firm, ANX International, will lead the technical direction of EquiChain as chief technology officer.
Madden said: “EquiChain allows the direct interaction and the exchange of value between market participants, without the current need for multiple touch points and the inefficient interaction of different systems.
“The use of cryptographic signatures reduces counterparty risk and prevents fraud, making blockchain-based transfers safer than other alternatives.”