Bloomberg reported that global fund management Vanguard has brought blockchain technology to a trading platform (FX) through peer-to-peer trading that will eliminate banks as intermediaries in order to reduce costs of trading and increase the returns. Moreover, hedging will be used in currency trading.
Vanguard will develop the platform with Symbiont, a startup that develops Blockchain technology. The technology has been tested with some traders for two months already.
Business Insider reported that the volume of currency trading (FX) is 6 trillion US dollars per day with JPMorgan, Goldman Sachs and many more acting as intermediaries to execute transactions with service fees. With the technology, costs of trading and investments are reduced.
Vanguard is one of the world’s biggest asset managers with assets of more than 5 trillion US dollars.
If the technology helps reduce costs, other fund management companies will be interested in bringing the technology to assist in trading.