Seven major financial companies conduct blockchain data management tests

Rage Review : Seven major financial institutions including Credit Suisse, Citibank and HSBC have formed a blockchain data management test project team to explore the role of distributed ledger technology in improving risk management, cost control and efficiency. The project's technical support provider is blockchain startup Axoni, which hopes to improve the inefficiency and uncertainty of existing processes through detailed technical testing and verification.

Translation: Annie_Xu

Seven major financial companies, including Credit Suisse, Citi and HSBC, have participated in a blockchain data management test project supported by blockchain company Axoni and the R3CEV blockchain consortium.

The project lasted for several months, and the participating companies were divided into buyer companies and seller companies to explore how the distributed ledger prototype can improve risk management, cost control, efficiency issues, and management of financial reference data. Participating institutions also include the Securities Industry and Financial Markets Association (SIFMA), a trade organization representing US securities companies.

The prototype used Axoni Core, the startup’s proprietary distributed ledger software, to simulate the joint management of corporate bond reference data, the sources said.

Axoni noted:

“The technology allows participants to interact with the reference data, and any changes must be verified and reviewed by the guarantor to ensure that the ledger is a unique and unalterable data record for all bonds.”

Participating companies said the project could show regulators and participants how the technology can be used to monitor the creation, publication and modification of data records, as well as who initiated those measures.

R3 CEO David Rutter and Credit Suisse’s director of blockchain and distributed ledgers Emmanuel Aido outlined how the solution could benefit the financial industry by improving the way data is managed.

Rutter said:

“In today’s market, data quality is critical for financial institutions. Unfortunately, their middle and back-end rely on legacy systems and processes, and often manually manage and fix unclear and erroneous reference data.”