Cobalt DL and SETL, two London-based start-ups have, teamed up on a platform to transform currency trades with blockchain technology, in an attempt to slash establishment times and expenses in the $4.10 trillion pounds world foreign exchange market. Cobalt DL, fronted by former Citi and Deutsche Bank currencies supremo Andy Coyne and supported by 15 major foreign exchange market members, which says it can complete transactions through blockchain right away. Blockchain, started in the virtual currency bitcoin, works as a web-based transaction-processing and settlement system. It constitutes a transcript of any given set of data that is systematically duplicated for all groups in a secure network, wiping out any need for approval from controlling entity.
The current foreign exchange market requires multiple records to be created for buyer, seller, broker, clearer and third parties in currency trades, and then reconciliation across multiple systems. Coyne explained to Reuters, “all data will have their own version of the trade and sends each other messages, confirmations, and everyone records their own version this is the shared version, which every participant in a trade has access to from their own perspective”.
SETL chief executive Peter Randall said, “this is not a proof-of-concept or a prototype, rather it will be a revenue-generating implementation of distributed ledger technology”. Like Cobalt DL, SETL is also run by heavyweights from the world of finance, rather than pure technologists.