Written By Goldman Sachs, Microsoft, and Cboe Global Markets have announced their partnership to launch a new blockchain-based platform that aims to simplify the complex world of derivatives trading. The platform, called “TradeSERV,” is expected to launch in late 2022.
The partnership between the financial and technology giants will allow TradeSERV to utilize Microsoft’s Azure cloud services to develop and operate the platform, while Cboe will provide its expertise in derivatives trading and Goldman Sachs will provide access to its network of clients.
TradeSERV is being designed to provide a more efficient and streamlined process for derivatives trading, which is currently a complex and time-consuming process involving multiple parties, documentation, and back-office operations. The platform will use blockchain technology to automate and digitize the trading process, reducing the need for manual intervention and paperwork.
According to a joint statement by the companies, TradeSERV “will provide market participants with greater visibility and transparency, reduced operational costs, and streamlined workflows.” It will also provide a more secure and auditable trading process, thanks to the use of blockchain technology.
The platform is expected to be particularly beneficial to small and medium-sized derivatives trading firms, which may not have the resources to develop their own trading infrastructure. By using TradeSERV, these firms will be able to access a state-of-the-art trading platform at a lower cost.
The announcement of TradeSERV comes as the use of blockchain technology in finance continues to grow. Blockchain’s ability to provide secure, transparent, and auditable transactions has made it an attractive option for a wide range of financial services, including trading, lending, and payments.
Goldman Sachs, Microsoft, and Cboe Global Markets are not the only companies exploring the use of blockchain in derivatives trading. Other firms, such as JPMorgan and Nasdaq, have also announced their own blockchain-based trading platforms in recent years.
The collaboration between Goldman Sachs, Microsoft, and Cboe is another indication of the growing convergence between traditional finance and technology. As financial services become increasingly digitized, partnerships between banks and tech companies are becoming more common.
However, the use of blockchain technology in finance is not without its challenges. One major obstacle is the need for interoperability between different blockchain platforms, as well as with legacy systems. This is an issue that TradeSERV and other blockchain-based trading platforms will need to address if they are to gain widespread adoption.
Overall, the launch of TradeSERV represents an important development in the evolution of blockchain technology in finance. As more companies explore the use of blockchain in trading and other financial services, we can expect to see further innovation and disruption in the sector.
