Digital Asset Holdings, a blockchain startup backed by some of the globe’s biggest banks, generated a platform to authorize dealers to apply blockchain technology without giving out privacy information on their deals. The latest platform gives answer to privacy controversy holding back ratification of the growing technology in financial markets, according to a report issued by the company, which is led by Blythe Masters, former executive at JP Morgan Chase. Blockchain, which first arrived as the software underpinning virtual currency bitcoin, is a shared data of transactions and asset ownership that is supported by a network of computers on the internet. This means every consumer on a network could potentially have contact to the layouts of every contract. Even though this decreases uncertainties related with conflicts in data files held by various companies, it also makes it defective for use in absolute securities markets where members would be at a disadvantage if they revealed where they stand.
Digital Asset’s platform answers the secrecy concern by segregating the distributed ledger of transactions into two components: one where members can confidentially store their transactions record, and another that is shared by all members without the confidential data, according to the information. The latest platform will structure the physical foundation of the technology that Digital Asset is building for financial institutions including Australian stock exchange (ASX) and U.S. Post Trade services provider the Depository Trust and Clearing Corporation. The firm was earlier this year granted a contract to oust the Australian Stock Exchange’s clearing and settlement systems with its blockchain based software. It now expects its business with ASX to start into production at the end of 2017 and be available for commercial practice next year following confirmation by the exchange and its partners, according to the company’s chief marketing officer, Dan O’Prey. Eagerness around blockchain in financial markets has erupted over the past year, the technology has yet to be used to operate huge financial processes such as the clearing and settlement of equities markets.
Research firm Greenwich Associates polled more than 130 executives working on blockchain in capital markets in June and found that secrecy transactions was their top security matter, with 56 percent of respondents citing it as their initial fear. Other than solving the confidentiality issue, Digital Asset’s technology can also interact with existing financial protocols, meaning that it could be implemented in a given market without the need for all participants to be running on a blockchain based system, according to the company.