FX post-trade processing network Cobalt has secured a strategic investment from Singapore Exchange (SGX) to support the continued expansion of the company’s footprint into the FX space, further accelerating technology development and build out of the team.
Cobalt’s edge is that its post-trade processing network is based on shared infrastructure and high-performance technology. A unique solution that leverages highly optimized technology alongside an in-house immutability service based on distributed ledger technology (DLT) to deliver a shared back and middle office infrastructure that is scalable, secure and fast.
Cobalt has been developed to replace the dated middle and back office systems of today, which can be inefficient, risk-laden and costly. Its shared view of trade data frees up back and middle office resources and creates a ‘golden’ portfolio of FX transactions.
SGX has not disclosed the investment size made on Cobalt and also joins Citigroup as an investor in Cobalt. The platform is currently in beta testing with more 30 countries and is planned for the summer launch. The investment will allow SGX to streamline its foreign exchange transactions.
Adrian Patten, Co-Founder and Chairman of Cobalt, said:
“SGX’s investment is testament to our innovative application of technology in the FX space. Our platform addresses pain points faced by almost every institution that trades FX: the unnecessary cost and risk associated with post-trade processing. Singapore is an important global hub for FX and we are delighted to welcome SGX on board as we continue to expand our footprint in the region.”
Henry Ritchotte, Strategic Advisor to Cobalt, added:
“Exchanges around the world continue to invest in the critical infrastructure underpinning financial markets. This collaboration between a major Asian exchange and an innovative firm that has developed a unique high performance, DLT solution is a major step forward in upgrading the systems our industry relies on to operate efficiently, safely and cost-effectively.”
Michael Syn, Head of Derivatives at SGX, commented:
“We are pleased to be supporting this important FX market infrastructure, which is complementary to our growing FX futures business and a natural fit for SGX given our own commitment to product and platform innovation. We look forward to seeing Cobalt continue to gain traction in the global post-trade FX market as they pioneer FX technology development, delivering cost and risk mitigation benefits to market participants across the world.”
In 2017, Cobalt secured investment from Henry Ritchotte’s fintech fund, RitMir Ventures. Ritchotte is a former member of the management board and group executive committee as well as chief operating officer and chief digital officer at Deutsche Bank.