As Greg Schvey, chief executive of Axoni, described the venture to the FT today as “a watershed moment for the industry” and he isn't wrong! The world’s main repository for data on credit derivatives deals (DTCC) will move its database on to Axoni's blockchain tech, in the first full scale production deployment of the nascent tech across the finance industry.
The DTCC’s warehouse electronically captures information about trades — such as who traded what, with whom and at what price — for about 98 per cent of all credit derivative transactions globally, with a notional value of about $11tn. The system is also used for handling default payments on transactions and works in partnership with CLS Bank, the world’s largest FX settlement service. “As one of the largest and most groundbreaking distributed ledger projects to date in the financial services industry, DTCC together with its member banks are reimagining the credit derivatives process,” said Bridget Van Kralingen, senior vice-president at IBM Industry Platforms, the unit that focuses on blockchain technology.