SETL.io claims its blockchain technology can handle nearly 1 billion transactions per day

The startup was founded in July by former Chi-X CEO Peter Randall and Anthony Culligan, who previously founded peer-to-peer bitcoin exchange Roolo.

SETL.io announced that they have now reached the capacity to process 1 billion transactions per day, sufficient to meet today’s market demands.

SETL.io is now looking for a private blockchain network that can handle payments and settlements for trading institutions. The goal is to greatly improve efficiency and reduce the cost of legacy processes while maintaining a high degree of transparency for regulators. It claims to be in dialogue with more than 40 financial institutions.

The startup argues that “legacy blockchain technology” like Bitcoin is not suitable for regulation, especially for large transactions. Bitcoin can only process seven transactions per second at best, and often less than that, especially when attacked by unknown hackers. Even with an ambitious plan to improve Bitcoin’s processing capacity, Bitcoin still has a long way to go in handling this aspect of financial markets (other proposals, such as the “Lightning Network,” have not yet been fully proven).

The startup claims to have developed a unique technology to process transactions in parallel, eliminating practical limitations on capacity.

Randal told reporters that the technology used for trade settlement will be very different in five years, as the startup has decided to do post-trade settlement for European trades like Chi-x. BATS Chi-x Europe is a low-fee, low-latency exchange that has conquered a significant market share previously held by traditional exchanges in eight years.

Randall will be attending this year’s Forex Magnates London Summit. In his talk on “Record-keeping Finance” he will present the benefits and challenges of unbundling books on a sector-by-sector basis, detail the current research directions of the bank’s internal labs and engage in a discussion on how startups can thoroughly compete with the giants of the trading industry.