In an unusual announcement, international financial services company Northern Trust has revealed what may be the world's first functioning private equities blockchain.
Rather than focus on applying blockchain efficiencies to high-throughput sectors, the project – developed in collaboration with IBM – has targeted an industry that processes few, manually intensive transactions. The aim is to increase the time-to-market for private equity funds, which will enhance liquidity and margins.
Also, rather than lead with a proof-of-concept, the platform was revealed as a live operation, albeit with only one client. Each of the numerous counterparties in the fund operates a node, including regulators who have real-time access to the relevant data.
CoinDesk spoke to the project's leads, including bank president Peter Cherecwich, who stressed the need to proceed slowly – an approach that reflects the conservative nature of the private equity sector.
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In BLOCKCHAINS FOR INSURANCE, CoinDesk takes a look at how blockchain technology is affecting a $5tn industry. We talk to the startups and incumbents making this happen, give an overview of the applications and share insights from industry insiders on how distributed ledgers can change a sector that touches almost every aspect of the global economy.
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