XBourse Global, Tony Mackay’s new markets venture, will be using DAML to develop digital markets and market infrastructure products, according to an official statement. The firm believes the open smart contract language created by New York-based Digital Asset will transform traditional and non-traditional capital markets.
Tony Mackay, founder and Chief Executive Officer of XBourse, said: “DAML enables us to build differentiated applications quickly, taking on broader mandates than most companies our size. DAML empowers us to pick and choose our infrastructure as we evolve as a company and our clients’ requirements change. The project: DABL suite of tools has enabled us to create the foundations for a robust, new market infrastructure in a little over a month. This will be the first of many applications we envision running on a project: DABL. We believe Digital Asset’s decision to make DAML open-source and blockchain-agnostic is a game-changer. By focusing on developing smart contract solutions based on DAML, XBourse and the industry can develop an ecosystem that will lower the cost and difficulty of accessing primary capital, thereby making secondary markets more resilient and cost-effective with less risk and less need for redundant reconciliation.”
“We see parallels between the development of electronic trading in the 90s and the current state of digital asset markets, where there are hundreds of trading venues and many largely incompatible gateways. Just as the FIX protocol and IP technology allowed all the different trading systems to be accessed via one common language, XBourse believes DAML will underpin the development of more secure, efficient and less costly infrastructure for digital markets”, Mackay added.
Eric Saraniecki, the co-founder of Digital Asset and the creator of the project: DABL, commented: “XBourse is a prime example of an organization we built project:DABL for. It’s a great option for anyone looking to build something
meaningful and launch into production in days, winning back months of time and allowing teams to differentiate where it really matters. Any startup can join our growing DABL ecosystem and some can even work out of our office, side-by-side with our core team.”
DAML tools enable innovation, flexibility and tokenized customer loyalty features that are not available in today’s traditional ‘analog’ markets. XBourse will use DAML smart contracts to develop a number of products, including:
– Asset-backed digital instruments including gold, commodities, real estate, and corporate bonds;
– Post-trade integration into complementary trading platforms for OTC, Auctions, RFQ and Central Limit Order Book markets for exchanging these new digital instruments. Innovative collateral and margin and token borrowing applications for new digital instruments;
– Cap table and shareholder registry services that will give both companies and shareholders more visibility over their interests. The distributed nature of the technology will also allow innovation in the business model to better align the interests of all stakeholders;
– Ethereum ERC20 integrations and other blockchain protocols that provide additional utility not possible with traditional financial instruments.
The XBourse technology stack includes a multi-asset and market trading layer which interfaces with a DAML-driven middle office. The DAML applications include counterparty and general risk management, trade confirmation, netting, and allocations. The technology will also provide delivery versus payment settlement on shorter cycles than is possible using today’s technology.
Prior to founding XBourse, Tony Mackay had a series of market ventures such as Krypto-X Markets and, most importantly, the Chi-X trading venue which was acquired by BATS (then acquired by Cboe) in 2011 for about US$365m in unlisted BATS shares.
