by Joseph Young
Digital Asset Holdings has secured a US$50 million funding round from international financial institutions and multi-billion banking groups, including Accenture, BNP Paribas, Citi, Deutsche Group, J.P. Morgan, Santander InnoVentures, and ABM AMRO.
Executives and directors of the institution will join the Digital Asset Holdings Board of Directors to improve efficiency, security, compliance and settlement speed of asset clearance systems in the conventional finance industry using distributed ledger technology.
“These investments represent a tremendous endorsement of Digital Asset from banks, exchanges, settlement and clearing firms, central securities depositories, and market infrastructure and professional services providers,” said Blythe Masters, CEO of Digital Asset Holdings. “Our strategic investors have come together from across the financial services industry to help drive global adoption of transformative solutions which enhance the vital services that they provide.”
As a part of its investment initiative, Digital Asset Holdings has partnered with ASX Limited, one of the leading investors in the multi-million dollar funding round, to develop solutions for the Australian market using the distributed ledger technology.
ASX Limited, better known as the Australian Securities Exchange, announced in February of 2015 that the exchange will be upgrading all of its trading and clearing platforms. In 2016, ASX in collaboration with Digital Asset Holdings will replace its existing trading and risk management platforms.
“Digital Asset is delighted to be selected to design the world’s first national scale post-trade solution utilizing Distributed Ledger Technology,” said Masters. “The Australian equities market could benefit tremendously from this new technology and enable ASX to better serve existing clients and create new opportunities.”
The foundation of the digital asset platform of the firm relies on the open-source distributed ledger infrastructure, upon which the Digital Asset Holdings platform can commit transactions on traditional databases. Utilizing the transparency of the Distributed Ledger Technology, the Digital Asset Holdings team develops a tailored system to meet the needs of specific asset classes and market needs.
“ASX believes that Australia can be a world leader in the development of innovative post-trade solutions. Our investment in Digital Asset represents a commitment to sizing the potential of Distributed Ledger Technology to reduce cost, risk and complexity for ASX’s broad stakeholder base, including issuers, investors, intermediaries and regulators,” said ASX Managing Director and CEO Elmer Kupper.
Interestingly, most of the banks and financial establishments which led the investment are the leading institutions of the R3 consortium, a group of major banking groups attempting to create their own version of the blockchain technology to develop a cross-country blockchain-based banking system.
JPMorgan, one of the founding members of the R3 consortium participated in the funding around as a lead investor, to explore the potential of the Distributed Ledger Technology in transforming the finance sector.
“We are proud to be a lead investor in this round of financing,” said Sanoke Viswanathan, the Managing Director of J.P. Morgan. “Distributed Ledger Technology has the potential to transform the way our industry does business, and we believe Digital Asset has the right talent and technology to make it a reality.”
With the partnership with ASX limited and the assistance of global finance leaders, Digital Asset Holdings aim to stand at the forefront of financial evolution, transforming the traditional methods of asset clearance and transfers.