HomeBlockchain InfrastructureDeloitte Luxembourg Pilot Tests Blockchain Platform for Banks

Deloitte Luxembourg Pilot Tests Blockchain Platform for Banks

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Deloitte Luxembourg, a branch of the multi-billion dollar accounting firm Deloitte, has announced the development of a proof of concept platform for regulatory transactions using the distributed ledger technology.

The DLT proof of concept, which is developed for financial institutions and major banks across the world, utilizes the blockchain technology to manage and observe transaction data with greater transparency and security.

Counterparties on the Deloitte DLT platform are enabled to initiate complex settlements including smart contract-based arrangements such as the settlement of derivative contracts (OTC).

At the current phase of development, Deloitte is focused on data reconciliation, cost of reporting and issues with timing. According to Deloitte Luxembourg Laurent Collet, the data and records stored and managed on the Deloitte DLT platform should be available to trade repositories and regulators in a systematic form.

For sensitive data or information to be presented to international organizations simultaneously, the development of a real-time platform is important, as it needs to sync with the existing systems and platforms of various financial establishments.

Thus, Collet states that the transaction data stored on the Deloitte platform will be accessed in a uniformed form, without reconciliation.

“With a DLT solution, the transaction data will be readily available to the trade repositories and regulators in a unified form and there will no longer be any need for time-consuming reconciliation,” explained collet.

One major basis behind the development of such technology is the introduction of new regulations including Markets in Financial Instruments Directive (MIFID) and Regulation (MIFIR) and Securities Financing Transactions Regulation (SFTR).

Deloitte believes that a unified DLT proof of concept platform can aid banks and financial establishments to stay in par with regulatory policies and international financial regulations.

The firm explained that the introduction of the abovementioned regulations will “dramatically increase the scope and the volume of transactions to be reported by financial institutions to the competent authorities on a daily basis.”

 


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Joseph Young
Joseph Young
Joseph is a web developer and designer, writer and a passionate musician who loves to travel often. He’s worked as a researcher for a number of venture capital firms and as a freelancer designer for resorts and corporations in Korea and the Philippines. Joseph will be covering new technologies, startups, technical analysis and breaking news in the bitcoin industry.

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