US asset management giant BlackRockrecently joined Axoni’s blockchain equity swaps network Veris, according to an announcement made by Tuesday.
BlackRock has now joined the likes of Citi, Goldman Sachs, and other counterparties to utilize the company’s equity swaps network, which launched in early 2020. BlackRock intends to use the Veris software to improve its post-trade derivative management and keep life cycle events synchronized, such as amendments, positions, and cash flows.
Carl Forsberg, Head of OTC Markets at Axoni, said in a statement:
“Sell-side participants will benefit immensely from using a shared platform with one of the industry’s most important swap counterparties. BlackRock will bring significant efficiencies to the network by driving adoption of standardized post-trade swap data models and workflows.”
Axoni is a New York-based capital technology company specializing in distributed ledger infrastructure.
Blackrock’s adoption of Axoni’s Veris platform would likely offer various advantages, including removing the need for reconciliation because of shared data and using standards. It will prevent high costs and risks because parties know their data will be synchronized.
Mark Cox, COO of Global Investment Operations at BlackRock, said:
“Today’s announcement is a significant milestone and the culmination of years of collaborative industry research, design, and development.
The Axoni platform will help us build scalability while mitigating risks in the investment life cycle beginning with equity swaps. We see great potential in a distributed ledger network for uncleared derivatives as we continue to prove out this new area of innovation.”
Both BlackRock and Citi have been proactive in adopting blockchain technology in the financial sector. In June, BlackRock opened job positions looking to hire specialists that incorporate blockchain technology into its investment support services.