Calastone To Use Blockchain In Settlement System
Calastone, a London-based fintech company, which assists many investment funds in conducting payment operations, plans to transfer the whole settlement system to blockchain by May 2019, Financial Times reports.
Calastone provides services to more than 1700 firms and corporations, including JP Morgan. The company's specialists claim that the project will help the industry save about 3.4 billion pounds ($4.3 billion), except for the US market.
Blockchain technology will help automate settlement processes, make them less expensive and more efficient. Participants will not need to transfer the same information several times. Currently, all the processes associated with the calculations are processed manually. As a rule, it is more than nine million messages and operations between market participants for about $217 billion per month.
The Calastone specialists started developing the blockchain solution more than a year ago. In June 2017, they announced the successful completion of the first stage of creating a distributed ledger and reported that their system would be placed on a private blockchain network in 2019.
Working with blockchain will reduce operating costs, increase productivity, and provide significant cost savings, Ken Tregidgo, Calastone Deputy Executive Director, stated. He added that this situation would be advantageous for all participants in the process.
Earlier, the WTO report revealed that the use of blockchain in various sectors of international trade can bring $3 trillion in the next two decades.