Citi and CME Clearing adopt blockchain for collateral management processes
Blockchain-powered platform implemented to reduce costs of back office functions and speed up margin funding times.
December 18, 2017 7:07 AM GMT
Citi and CME Clearing have teamed up with Baton Systems to implement a blockchain-based platform as the firms look to reduce costs of back-office functions.
The platform allows banks to view their collateral in their ledgers in real-time and send cash or securities to clearing houses with one-click.
Citi and CME Clearing explained the blockchain software could significantly reduce costs of back-office operations and speed up margin funding times.
Traditionally banks have had to set aside capital as they wait for collateral to be settled, but the platform could see billions of dollars of capital freed up at major institutions.