Vanguard has successfully tested digital asset management on blockchain
Testing included participants such as an unnamed US supplier of asset-backed securities, a provider of solutions based on Symbiont distributed registry technology, BNY Mellon and Citi. As part of the pilot initiative, the full cycle of securities settlements was tested on a blockchain.
In subsequent testing phases, Vanguard and Symbiont plan to integrate smart contracts into the issuance and settlement of asset-backed securities. This will allow "increased data flow as well as faster comparison of prices and liquidity in the secondary market". It will also automate the execution of "key corporate actions.
According to Symbiont head Mark Smith, the pilot program marks "a fundamental change in financial markets through a blockbuster.
It should be noted that currently Vanguard manages assets worth US$5.7 trillion and provides access to 425 funds to 30 million investors. Last autumn, Vanguard and Symbiont announced the joint development of a trading platform for the foreign exchange market.