SIX, the Swiss stock exchange operator, wants to make use of the Blockchain technology and has hired U.S. banker Blythe Masters to help it along.
SIX Group and Digital Asset, the company of Blythe Masters, have signed an agreement for the development and use of Blockchain, the software behind crypto currencies.
Prototype for Securities Lifecycle Processing
The deal entails the construction of a prototype for securities lifecycle processing, using the platform provided by Digital Asset, SIX said in a statement today.
Digital Asset is a New York-based technology firm, and Masters is its CEO. The company has offices in London, Sydney, Zurich and Budapest. Masters, a former investment banker, became famous with credit default swaps.
Roadmap for Production-Ready Service
Masters' company will build the first prototype for securities lifecycle processing to demonstrate the ability to build and incorporate distributed, encrypted processing tools into existing securities transaction flows and propose a roadmap for extending this to a production-ready service.
The proof of concept will extend beyond the scope of the prototype, and Digital Asset will develop a product roadmap for future opportunities to include a wide range of applications that demonstrate how current, segregated processes could be streamlined and made more efficient for SIX securities services, the Swiss stock exchange operator said.
Prototype in Geneva
SIX Securities Services has already made strides in exploring distributed ledger technologies and currently has a prototype for corporate actions processing on display at Sibos, in Geneva.
«Distributed ledger technology and its potential role in post trading is key to our business. We need to understand it, and more importantly, its applicability and future flexibility in order to keep ahead of the game. Partnering with Digital Asset is a way to accelerate our own development plans and leverage their experience in this area,» said Thomas Zeeb, CEO of securities services at SIX.
