Finastra, a provider of financial software apps, announced on Tuesday a partnership with Fragmos Chain, a blockchain technology platform, which will enable the digitalization of over-the-counter (OTC) derivatives.
According to the press release, banks and financial institutions can digitalize their OTC products, reducing the risks and costs usually associated with manual processing. It is possible due to the automation of derivative confirmation and post-transaction processes.
Fragmos Chain is a cloud blockchain
Blockchain
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others.
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others.
Read this Term platform that provides digitalized post-trade derivatives. Due to the integration with Finastra’s solutions, market participants will take advantage of smart contract capabilities to improve regulatory reporting. Distributed ledger technology (DLT
Distributed Ledger Technology (DLT)
A distributed ledger or distributed ledger technology (DLT) is a database that is shared and synchronized across a number of different devices in different locations. DLT networks effectively eliminate the need for a centralized authority to act as the network’s custodian. In its place is a Peer-to-Peer (P2P) network as consensus algorithms to ensure replication across nodes is undertaken.The most common kind of distributed ledger network is a blockchain network. Blockchain networks are used to run most of the world’s largest cryptocurrencies, including Bitcoin and Ethereum.Benefits of Distributed Ledger TechnologyThe primary advantage of DLT is the lack of central authority. Each time a ledger update happens, every node constructs a new transaction. Subsequently, all nodes vote by consensus algorithm on which copy is correct. Once a consensus has been determined, all the other nodes update themselves with the new, correct copy of the ledger. This provides several inherent security advantages, achieved via cryptographic keys and signatures.The information stored in a distributed ledger is immutable, or unchangeable. This is because in order to make changes on the network, more than half of the devices that uphold the network would have to consent. This is a very effective defense against hacking and tampering, but it can also lead to difficulties when it comes to things like agreeing on software updates. As a result, unmet desires to update a blockchain network’s software has led to the creation of entirely new networks with new cryptocurrencies (i.e., Bitcoin Cash).Many industries have since branched out with DLT, including banks and multiple fintechs. The area continues to draw much research, and scrutiny. Many proponents of DLT see it as the future of finance, though this is far from a consensus perspective.
A distributed ledger or distributed ledger technology (DLT) is a database that is shared and synchronized across a number of different devices in different locations. DLT networks effectively eliminate the need for a centralized authority to act as the network’s custodian. In its place is a Peer-to-Peer (P2P) network as consensus algorithms to ensure replication across nodes is undertaken.The most common kind of distributed ledger network is a blockchain network. Blockchain networks are used to run most of the world’s largest cryptocurrencies, including Bitcoin and Ethereum.Benefits of Distributed Ledger TechnologyThe primary advantage of DLT is the lack of central authority. Each time a ledger update happens, every node constructs a new transaction. Subsequently, all nodes vote by consensus algorithm on which copy is correct. Once a consensus has been determined, all the other nodes update themselves with the new, correct copy of the ledger. This provides several inherent security advantages, achieved via cryptographic keys and signatures.The information stored in a distributed ledger is immutable, or unchangeable. This is because in order to make changes on the network, more than half of the devices that uphold the network would have to consent. This is a very effective defense against hacking and tampering, but it can also lead to difficulties when it comes to things like agreeing on software updates. As a result, unmet desires to update a blockchain network’s software has led to the creation of entirely new networks with new cryptocurrencies (i.e., Bitcoin Cash).Many industries have since branched out with DLT, including banks and multiple fintechs. The area continues to draw much research, and scrutiny. Many proponents of DLT see it as the future of finance, though this is far from a consensus perspective.
Read this Term) will allow better matching of trades, cash flows and market events for timely and hassle-free settlement of transactions.
“Our partnership enables us to transform our customers’ business models by providing a digital market infrastructure underpinned by DLT. Integrating Fragmos Chain with Finastra’s Summit, via our open platform for innovation FusionFabric.cloud, will help to reduce the challenges associated with traditional post-trade processes, such as reconciliations and disputes, to support a bank’s continued growth,” Benoit Riquet, the Chief Product Officer, Treasury & Capital Markets at Finastra, said.
“We are delighted to partner with Fragmos Chain, bringing the benefits of our open ecosystem to our customers on top of our functionally rich trading solution.”
Finastra’s partnership with Fragmos Chain should transform the way banks are interoperating and eliminate paper by automating all post-trade processes, Daniel Ivanier, the CEO at Fragmos Chain, commented.
OTC Crypto Market Gains Popularity
At the same time, OTC instruments for the cryptocurrency market, including pos-trade services, are gaining popularity.
B2C2, a cryptocurrency market-maker owned by Japan’s SBI Holdings, recently expanded its offering to include electronic options trading for OTC cryptocurrency products. It further provides options for post-trade functionalities.
Two weeks earlier, Hidden Road, a credit network for institutional investors, launched its first OTC prime brokerage service for digital tokens. The new platform onboarded most of the top 25 global liquidity providers, catering to international and US counterparties.
Finastra, a provider of financial software apps, announced on Tuesday a partnership with Fragmos Chain, a blockchain technology platform, which will enable the digitalization of over-the-counter (OTC) derivatives.
According to the press release, banks and financial institutions can digitalize their OTC products, reducing the risks and costs usually associated with manual processing. It is possible due to the automation of derivative confirmation and post-transaction processes.
Fragmos Chain is a cloud blockchain
Blockchain
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others.
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others.
Read this Term platform that provides digitalized post-trade derivatives. Due to the integration with Finastra’s solutions, market participants will take advantage of smart contract capabilities to improve regulatory reporting. Distributed ledger technology (DLT
Distributed Ledger Technology (DLT)
A distributed ledger or distributed ledger technology (DLT) is a database that is shared and synchronized across a number of different devices in different locations. DLT networks effectively eliminate the need for a centralized authority to act as the network’s custodian. In its place is a Peer-to-Peer (P2P) network as consensus algorithms to ensure replication across nodes is undertaken.The most common kind of distributed ledger network is a blockchain network. Blockchain networks are used to run most of the world’s largest cryptocurrencies, including Bitcoin and Ethereum.Benefits of Distributed Ledger TechnologyThe primary advantage of DLT is the lack of central authority. Each time a ledger update happens, every node constructs a new transaction. Subsequently, all nodes vote by consensus algorithm on which copy is correct. Once a consensus has been determined, all the other nodes update themselves with the new, correct copy of the ledger. This provides several inherent security advantages, achieved via cryptographic keys and signatures.The information stored in a distributed ledger is immutable, or unchangeable. This is because in order to make changes on the network, more than half of the devices that uphold the network would have to consent. This is a very effective defense against hacking and tampering, but it can also lead to difficulties when it comes to things like agreeing on software updates. As a result, unmet desires to update a blockchain network’s software has led to the creation of entirely new networks with new cryptocurrencies (i.e., Bitcoin Cash).Many industries have since branched out with DLT, including banks and multiple fintechs. The area continues to draw much research, and scrutiny. Many proponents of DLT see it as the future of finance, though this is far from a consensus perspective.
A distributed ledger or distributed ledger technology (DLT) is a database that is shared and synchronized across a number of different devices in different locations. DLT networks effectively eliminate the need for a centralized authority to act as the network’s custodian. In its place is a Peer-to-Peer (P2P) network as consensus algorithms to ensure replication across nodes is undertaken.The most common kind of distributed ledger network is a blockchain network. Blockchain networks are used to run most of the world’s largest cryptocurrencies, including Bitcoin and Ethereum.Benefits of Distributed Ledger TechnologyThe primary advantage of DLT is the lack of central authority. Each time a ledger update happens, every node constructs a new transaction. Subsequently, all nodes vote by consensus algorithm on which copy is correct. Once a consensus has been determined, all the other nodes update themselves with the new, correct copy of the ledger. This provides several inherent security advantages, achieved via cryptographic keys and signatures.The information stored in a distributed ledger is immutable, or unchangeable. This is because in order to make changes on the network, more than half of the devices that uphold the network would have to consent. This is a very effective defense against hacking and tampering, but it can also lead to difficulties when it comes to things like agreeing on software updates. As a result, unmet desires to update a blockchain network’s software has led to the creation of entirely new networks with new cryptocurrencies (i.e., Bitcoin Cash).Many industries have since branched out with DLT, including banks and multiple fintechs. The area continues to draw much research, and scrutiny. Many proponents of DLT see it as the future of finance, though this is far from a consensus perspective.
Read this Term) will allow better matching of trades, cash flows and market events for timely and hassle-free settlement of transactions.
“Our partnership enables us to transform our customers’ business models by providing a digital market infrastructure underpinned by DLT. Integrating Fragmos Chain with Finastra’s Summit, via our open platform for innovation FusionFabric.cloud, will help to reduce the challenges associated with traditional post-trade processes, such as reconciliations and disputes, to support a bank’s continued growth,” Benoit Riquet, the Chief Product Officer, Treasury & Capital Markets at Finastra, said.
“We are delighted to partner with Fragmos Chain, bringing the benefits of our open ecosystem to our customers on top of our functionally rich trading solution.”
Finastra’s partnership with Fragmos Chain should transform the way banks are interoperating and eliminate paper by automating all post-trade processes, Daniel Ivanier, the CEO at Fragmos Chain, commented.
OTC Crypto Market Gains Popularity
At the same time, OTC instruments for the cryptocurrency market, including pos-trade services, are gaining popularity.
B2C2, a cryptocurrency market-maker owned by Japan’s SBI Holdings, recently expanded its offering to include electronic options trading for OTC cryptocurrency products. It further provides options for post-trade functionalities.
Two weeks earlier, Hidden Road, a credit network for institutional investors, launched its first OTC prime brokerage service for digital tokens. The new platform onboarded most of the top 25 global liquidity providers, catering to international and US counterparties.
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