Source: BC Gateways
Following a successful pre-launch pilot, major financial institutions are supporting the launch of The Gateway – the world’s first whole-of-industry blockchain platform for financial services.
The platform will fundamentally change the way information is distributed across the industry. By introducing a global Shared Source of Truth, it effectively reduces the cost and regulatory burden driven by imperfect data communication and associated risks.
Pilot participants from across the wealth management ecosystem included custodian banks, fund managers, administrators and technology providers such as Aberdeen Standard Investments, IRESS, Perpetual, and Equity Trustees.
IRESS Chief Executive Andrew Walsh added, “IRESS is delighted to be working with leading technology and funds management participants to change the way financial data is delivered. Through the use of the blockchain, we’re able to significantly improve the timeliness and quality of unit pricing and other fund data which over time we expect to reduce costs and increase efficiency. The multiple connectivity options to the BC Gateway allows us and other participants to quickly implement the solution with minimal changes.”
The Gateway is designed for the global industry to publish and distribute any type of structured data, however, for the purposes of a controlled testing environment the pilot focused on distributing pricing data in the Australian wealth management industry. Having validated The Gateway meets business requirements, the community supporting the platform has identified further opportunities and a number of participants are currently optimising their operating models in preparation for launch.
Executive General Manager, Corporate Trustee Services and Head of Global Fund Services, Harvey Kalman from Equity Trustees said, “We are always looking for ways to increase efficiencies and reduce costs across operational activities. We see The Gateway as a significant breakthrough and look forward to working with the industry to maximise the benefits.”
Having conducted the pilot and overseen the move to production, Managing Director Gordon Little said, “It was very encouraging to see the industry’s appetite to work with an operational blockchain product that solves real-world problems. We are now looking forward to launching the service having already progressed development to support tax and regulatory reporting.”
Gordon is also excited about the demand from participants to take the platform international, commenting that, “Given the global nature of financial services and our clients, we will be extending the service internationally following take-up in Australia. The same fractured infrastructure for sharing information on unlisted assets that causes issues in Australia is replicated around the world.”
The Gateway uses blockchain technology to safeguard data integrity as it is distributed across complex networks and provides a chain of custody that enables instant auditability and authentication. By doing so, the platform offers a single point of reconciliation for every industry participant and thus provides concrete benefits by reducing risk, cost and complexity.
However, it’s not the technology itself that makes the platform a true game changer.
As Founder of BC Gateways Andy Hutchings Broso explained, “For the first time, the industry will have access to a Shared Source of Truth that simplifies current operations and provides a foundation for development. Ultimately, by removing complexity from information flows our solution allows the industry to better serve its customers.”