Faster, cheaper: blockchain breeds competition

Faster, cheaper: blockchain breeds competition

Blockchain technology has the potential to provide superior post-trade infrastructure to investors. Fund managers will soon be enjoying faster and cheaper transactions than what monopoly incumbents such as the ASX offer, thanks to competition, a tech company boss predicts.

The post-trade world is “very, very expensive relative to the work that is performed”, says Peter Randall, president of technology company SETL. SETL has built institutional payment and settlements infrastructure based on blockchain technology, which could emerge as competition to a blockchain-based platform the ASX is now developing to replace its legacy Clearing House Electronic Subregister System (CHESS) infrastructure.

Randall will speak at Investment Magazine’s upcoming Investment Operations Conference, to be held in Sydney on February 26.

Randall says Australia’s equity market contributes roughly $100 million annually to the ASX and that investors could benefit from lower fees at an alternative service based on a distributed ledger.

“A blockchain-based solution is able to offer a significant reduction in cost, a significant increase in speed, and a great jump in capacity,” Randall says.


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Source: Faster, cheaper: blockchain breeds competition | Investment Magazine