FinTech firm Cobalt DL, co-founded by by ex-Traiana CEO Andrew Coyne, has commenced beta testing with a number of FX participants on its private peer-to-peer network that uses distributed ledger technology to cut post-trade cost and risk.
After a year of design and testing and following completion of a proof-of-concept with one of the largest FX market making banks, the platform will launch in 2017, with eight institutional FX participants already committed to the service.
From a single transaction, existing post-trade infrastructure creates multiple trade records for buyer, seller, broker, clearer and third parties. By creating a single, shared view of a transaction, Cobalt DL aims to free up back and middle office resources that are currently overwhelmed by the need for continuous reconciliation across multiple systems.
Financial technology specialist First Derivatives has invested and partnered with Cobalt DL, providing services to develop the technology. Cobalt DL will licence First Derivatives' Kx technology as a core part of its platform.