Blockchain initiative gains momentum with derivatives investment

Cobalt DL enters in beta testing with eight FX institutions, amid investment from First Derivatives.

Cobalt DL has entered into its beta testing phase with the backing of eight foreign exchange (FX) institutions, amid an investment from First Derivatives.

FinTech specialist First Derivatives has also agreed to supply the blockchain initiative with with its big data solution ‘Kx technology’.

Following a year of design and completion of a proof-of-concept with a large FX market-making bank, Cobalt DL said its blockchain platform is on track to launch in 2017.

It added that eight “leading institutional FX participants have already committed to the service”.

The technology will create trade records for buyer, seller, broker, clearer and third parties from single transactions through existing post-trade infrastructure.

It can be integrated with all trading venues, with Bats Hotspot already signed up as a partnering venue for the platform.

Cobalt DL’s blockchain based platform is “set to slash billions of dollars of costs faced by market participants,” according to the firm.

Chief executive officer and co-founder, Andy Coyne said the company is “shaking up the post-trade space” and reducing costs for participants.

Coyne was a former CEO at ICAP’s currency market infrastructure company Traiana, and has headed up FX prime brokerage at Citi and Deutsche Bank.