UK Fintech Settles Security on Ethereum Blockchain in a World-First with Microsoft

UK Fintech Settles Security on Ethereum Blockchain in a World-First with Microsoft

The blockchain has just disrupted another niche. UK-based Nivaura in partnership with Microsoft’s Azure cloud has proved in a test case that the public ledger can be used to support regulated assets. The blockchain is an increasingly attractive option as the payments industry continues to embrace cryptocurrencies and even digital fiat money.

The technology was created by Avtar Sehra, Nivaura’s CEO, chief product architect and a theoretical physicist who switched careers only to uncover a bunch of inefficiencies in investment banking.

The fintech startup tested its technology by performing the registration, clearing and settlement functions on a pair of principal protected notes (PPN) tracking the FTSE 100 index, one of which relied on the Ethereum network and the other that relied on traditional methods, then compared results. The experiment was successful.

If the platform catches on among investment banks and even venture capitalists raising new funds, among others, it could lead to a paradigm shift in how investment products are designed, leaving certain third-party service providers and their hefty fees out in the cold.

Blockchain the Disrupter

The blockchain is a disrupter of industries, everybody knows that. And now it’s made its way into investment management, removing the need for third-party firms that traditionally perform pricey functions tied to clearing, settling and more.

Nivaura gives the example of a UK-based retail investment company that used the blockchain-fueled technology for a bond issuance a year ago. The administrative costs associated with the product, which are typically spread across the issuer and investors, were reduced from GBP  30,000 to GBP 50 across the duration of the product.

Nivaura appears to be targeting investment banks with its technology but it could probably be used by any entity involved with bond issuance, including companies or government agencies, for instance.

As one of Sehra’s followers on Twitter explained, the platform creates a peer-to-peer relationship with the issuer of the financial product and the investor.

Meanwhile, the company selected Microsoft’s Azure and its Coco Framework for blockchain due to its support of regulatory guidance issued by the UK’s financial watchdog, the FCA.

In addition to Ethereum, Nivaura’s technology also works with the bitcoin network and could eventually support Zcash and JPMorgan’s Quorum blockchain.

Featured image from Shutterstock.

23.03.2018 / 06:00 127
Security Settles on Ethereum in First-of-a-Kind Blockchain Transaction Security Settles on Ethereum in
In a first-of-a-kind transaction happening Friday, all it takes to switch from the old world of centralized clearing houses to the frontier of
Former Thai Finance Minister Supports Proposals for SEC-Regulated Cryptocurrency Sector Former Thai Finance Minister Supports
The Chairman of the Thai Fintech Association (TFA) and Thailand’s Former Finance Minister, Korn Chatikavanij, has offered his support for recent
TrueEx Teams With ConsenSys To Make Ethereum More Accessible To Institutional Players TrueEx Teams With ConsenSys To Make
Fintech company trueEx will launch a regulated digital asset marketplace, and its new affiliate, True Digital, will partner with ConsenSys to create
Microsoft Thwarts Massive Electroneum Mining Malware Campaign Microsoft Thwarts Massive Electroneum
Microsoft’s Windows Defender reportedly managed to prevent a massive Electroneum (ETN) mining campaign from spreading, according to the IT giant. Per
Comcast Makes First Big Bet on a Multi-Blockchain Future Comcast Makes First Big Bet on a
Comcast is banking on a world with multiple blockchains. Revealed exclusively to CoinDesk, the venture arm of the telecommunications giant is leading
Blockchain Needs Some Centralization, Says Chinese SEC Official Blockchain Needs Some Centralization,
An official from one of China's financial regulators argued at the "Two Sessions" conference in Beijing on Sunday that blockchains are better if not
Comments (0)
Add a comment
Comment on