The London-based institutional digital securities exchange has partnered with R3 in order to use the enterprise blockchain software firm’s Corda Enterprise platform to handle post-trade activities on a distributed ledger.
As Archax focuses on providing an exchange for institutions and professional investors to trade in all types of digital securities globally and operate as a multilateral trading facility (MTF), Archax
will use R3’s Corda technology to build its post-trade infrastructure to reduce friction in the post-trade process.
The digital asset exchange is currently awaiting regulatory approval from the UK Financial Conduct Authority (FCA).
Graham Rodford, Chief Executive Officer of Archax, commented: “Our existing systems and partnerships with firms like Aquis, provide the core functionality for our exchange. R3, with its Corda product, provides the final piece of the puzzle on which we can build a truly revolutionary post-trade solution. Although Archax is blockchain agnostic for digital security issuances, we needed an institutional-grade system for our own post-trade use. R3’s permissioned blockchain solution is already used by leading blue-chip organizations so it fits the bill perfectly. This partnership will deliver the blockchain efficiency gains for financial markets that are so often talked about, and we believe it will be the first of its kind.
“The current post-trade process in traditional financial markets is hugely inefficient, with many intermediaries involved. This partnership between R3 and Archax will enable us to revolutionize the current post-trade space, removing friction and streamlining activities to improve efficiency and reduce cost”, Rodford added.
Cathy Minter, Chief Revenue Officer at R3, said: “Working alongside the world’s leading financial institutions, R3 made a conscious decision to leverage blockchain technology to solve real business problems in both complex and highly regulated markets. Representing assets as tokens on a blockchain platform is one of the most impactful applications of the technology and a key focus for R3, too. Archax, with its experienced team and base in London, is building one of the most credible venues for these tokens and will play a key role in driving institutional adoption. As such, our Corda Enterprise platform is ideally suited for this project, and we look forward to working together to disrupt and revolutionize how financial markets operate.”
Corda Enterprise is R3’s blockchain solution designed specifically for highly regulated environments with exacting requirements around the quality of service and network infrastructure. It harnesses the core elements of Corda so that businesses can get up and running quickly and efficiently Archax will use a private version of Corda Enterprise within its own ecosystem to handle post-trade activities.