Axoni, Markit Test Blockchain for Credit Default Swaps with BofA, Citi, Credit Suisse, JPMorgan, DTCC
Earlier in April, seven firms announced the successful test of blockchain technology and smart contracts to manage post-trade lifecycle events for standard North American single name credit default swaps (CDS).
The first of its kind initiative demonstrated that the complex events inherent to CDS, including payments, amendments, novations and compressions, can be efficiently managed on a blockchain in a permissioned, distributed, peer-to-peer network.
The group included four global financial institutions (Bank of America Merrill Lynch, Citi, Credit Suisse, J.P. Morgan), The Depository Trust & Clearing Corporation (DTCC) and Markit, in collaboration with Axoni, a distributed ledger technology firm. Over the several months of the project, the group established a blockchain trade processing network across a blend of hosted and locally-installed deployments of Axoni software.