World’s biggest mutual funds key player, Vanguard has already geared up to change foreign exchanges in the coming years.
According to Andy Maack, it’s head of FX trading, the exploitation is quite intriguing and would be helpful to foreign exchanges.
The system that they are developing a plan to work on institutional asset managers to function as a peer to peer trading.
Thus, the participants will be able to go around the usual banks and various intermediaries to lessen trade costs.
This platform of Vanguard is being developed by a blockchain technology called Symbiont.
This follows a digital asset-backed securities pilot that showcases Assembly blockchain making blockchain a viable option for many big enterprises engaged in FX.
In the usual case, trading firms work with foreign exchange for hedging and surveillance purposes. The market is ruled by contracts that serve as a variable in over the counter-transaction.
The computations and collateral movement often go within two to three days.
Meanwhile, various groups of banks is planning to tokenize currencies to settle at currency trades.
HSBC earlier this year has already used blockchain in forex as well as Deutsche bank thru its FX platform, Cobalt