Blockchain specialists SETL and Cobalt DL have teamed up to produce a post-trade tool for foreign exchange, with 15 leading institutional FX participants already signed up.
SETL’s OpenCSD platform will be deployed within Cobalt’s FX post-trade platform, to create a single shared view of each transaction.
It will create a depository of trade information and the record will provide cryptographic proof of a contract and of the parties’ agreement to the trade terms.
“The immutable record will obviate disagreements and reconciliation problems between participants and is expected to result in significantly reduced costs,” SETL said.
Users will be able to retrieve details of their trading activity from the ledger, which verifies their inclusion in the shared record, but does not allow them to examine other participants’’ activities.
Co-founder of Cobalt DL, Andy Coyne, explained the company chose to partner with SETL due to its “demonstrated technical leadership in the field [and] their ability to process trades at scale and their team’s deep understanding of financial services.”
Peter Randall, CEO of SETL, added the tool is “not a proof-of-concept or a prototype; it will be a revenue generating implementation of distributed ledger technology.”
The service is expected to launch in January 2017.