- BlackRock Inc joins a blockchain technology platform to offer equity swaps
- BlackRock has joined major banks including Goldman Sachs and Citigroup Inc, on a distributed money ledger, Axoni
- According to Mark Cox, Veris will boost BlackRock to conceive scalability
BlackRock Inc is a US-based transnational investment management firm headquartered in New York City. The firm was founded in 1988 as a risk manager. Since then Blackrock has become one of the world’s largest asset managers. Notably, in the current scenario, the investment firm has more than $9 trillion in assets under management (AUM). The asset manager has plans to embrace the potential blockchain technology to handle complex equity derivatives handily. Hence, to accomplish its goal BlackRock has enrolled in the blockchain platform Axoni.
BlackRock joins Goldman Sachs and Citigroup on a blockchain
BlackRock has joined major banks including Goldman Sachs and Citigroup Inc, on a distributed money ledger. On the other hand, major institutions like JPMorgan Chase & Co. and Andreessen Horowitz venture are also among the same ledger. According to a statement shared by Axoni, the financial-technology, the distributed money ledger is Veris which is operated by it. Moreover, the network is created to help firms match and reconcile post-trade data on financial instrument swaps.
The global market for equity swaps is soaring
According to data from the Bank for International Settlements, currently, the global market for equity-linked forwards and swaps is approximately $3.6 trillion. Certainly, the figure is significantly up by more than $1 trillion over the past four years. In contrast, with the tide in volume, traders can face challenges ascertaining the details of trades, cash flows among traders, and other alterations that can transpire over the life of the derivative transactions.
How will Veris help the investment firm?
According to Mark Cox, chief operating officer of global investment operations at BlackRock, Veris will boost BlackRock to conceive scalability. The institution will conceive this while mitigating bets in the investment life cycle initiating with equity swaps. Additionally, he added that the firm notices vast potential in a distributed-ledger network for uncleared derivatives.
Moreover, the investment firm will incorporate New York-based Axoni’s software with its Aladdin operating system, which was first assembled to boost chase its financial threat. However, it is now negotiated with assets managers and other clients. Notably, in 2020, the firm reaped more than $1 billion in tech-related services proceeds.
JPMorgan Chase & Co., Andreessen Horowitz, Goldman,n, and Citigroup are among Axoni’s investors.