Vanguard, the $5.7 trillion asset manager, has completed the first phase of its pilot testing of settlements for blockchain-based asset-backed securities (ABS).
The world’s second-largest index fund manager has partnered with a large US-based ABS provider, distributed ledger technology provider Symbiont, and financial institutions BNY Mellon and Citi, to model the full life cycle of securities settlement using a distributed ledger technology network.
Vanguard and Symbiont envisage later phases of the pilot will integrate smart contracts into the ABS issuance and settlement process, offering “increased information flow, enhanced price discovery and secondary market liquidity” and the automated execution of “key corporate actions”.
As of 30 April, Vanguard managed $5.7 trillion in assets globally, offering more than 425 funds to 30 million investors.
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