Vanguard, an asset management company, has reportedly been working on a blockchain trading platform for some time now.
The platform is being developed as a joint project between Vanguard and Symbiont, a blockchain development company.
According to Bloomberg reports, the Vanguard mutual fund has been testing out the platform for the past two months, and there have been some successful trades completed.
Vanguard is currently managing more than $5 trillion in investment assets.
Blockchain trading platform
The main goal behind Vanguard’s blockchain trading platform is to give asset managers an easy and straight-forward environment, where they can trade without the need to go to a bank.
The main focus of the blockchain trading platform will fall on foreign exchange trades (FX trades), as these are the ones, which usually require investors to go to an investment bank.
According to Carolyn Wegemann, who is one of Vanguard’s spokespeople, the main idea behind this new platform is to reduce costs for investors. In her statement, she claims that the blockchain trading platform will significantly reduce operational and transaction costs, which in turn will make FX trading cheaper for asset managers.
Blockchain trading platforms and cryptocurrencies are becoming increasingly popular among bankers, as well. Recently, JP Morgan announced the launch of its JPM Coin digital currency, and the JP Morgan cryptocurrency Information Network (IIN).
According to Bloomberg, the Vanguard trading platform has the potential to be the next revolutionary addition to the trading space, much as JP Morgan did with INN.
Some of the largest banking institutions are already part of INN – Deutsche Bank and Oversea-Chinese Banking Corporation (OCBC) being some of the latest to join.