The latest updates from the world of information technology speak of various groups and corporations venturing into blockchain adoptions. Blockchain, in and of itself, is a novel idea with many promises, but it has encountered many roadblocks to implementations. Blockchain, as a digital ledger, promises to transform the face of online financial transactions.
Vanguard, a major mutual fund giant, has announced its latest partnership withSymbiont, a beneficiary of Nasdaq ventures. The partnership would provide support for Symbiont, a blockchain startup, to build a trading platform that can serve the over $6 trillion markets. Vanguard currently manages funds worth over $5 trillion. Vanguard intends on leveraging blockchain solutions to help reduce the cost of operations. By employing the peer-to-peer system in blockchain technology, Vanguard expects to facilitate fast and secure connections between trading investors.
Mark Smith, CEO of Symbiont, confirmed news about the partnership with Vanguard. He also revealed that the platform has been functional for more than two months. Within that period, it has recorded successful transactions. Along with minimised operations costs, the platform is also expected to increase efficiency and reduce the risk of FX hedging. While the pilot study is still in the works, its success would represent one more significant point in the history of Wall Street and index funds.
What does Symbiont has done before
Incidentally, this is not the first time that Symbiont has worked with Vanguard. Previously, Symbiont has worked on a project for Vanguard 2017. The project mostly involved optimizing data collection for index funds using smart technology. Symbiont must have performed exceptionally for Vanguard to be willing to pay more for higher stakes.
Symbiont has also implemented blockchain services and solutions for other members of Wall Street in different scenarios. Symbiont has worked with Ipreo’sSynaps platform to develop an optimum system for syndicated loan marketing. Symbiont also lists Lewis Ranieri among its esteemed clientele, aiding the development of a more efficient and transparent mortgage system. January 2019, Symbiont was able to bag $20 million in Series B funding from investors such as Nasdaq Ventures, Galaxy Digital, Cities, and Raptor Group.
Symbiont was involved with Nasdaq Financial Framework, the software domiciliar of the exchange group. The aim included exploiting applications of Symbiont’s smart contracts in tokenization. Since it was created in 2013, Symbiont has raised over 15 million dollars combined in both 2014 and 2017 Series funding rounds. Symbiontseems to be a very promising venture as it continues to draw investors from near and far. Recently, Overstock and Hundsun Technologies joined the list of investors. Overstock has interests in blockchain and retail sales. Hudson Technologies is a Chinese based software firm that lists Jack Ma, CEO of Alibaba, as a strong supporter.
What is their focus?
Symbiont is a blockchain startup that is dedicated to developing smart contracts. Its primary focus is implementing its blockchain platform, Symbiont Assembly, for institutions. Symbiont Assembly provides a suitable platform for peer-to-peer authentication, decentralized network, and quick data transfer in real-time.
Similar startups such as Digital Asset, Erethreum, Hyperledger, and R3 also occupy the blockchain market space. Yet it seems the Symbiont is the most successful of these enterprises. Mark Smith also confirmed this statement claiming authenticity issues and the various shortcomings inherent in other blockchain startups. These reasons are why Symbiont has been the reason for Symbiont’s undisputed reign. In his words, “we are the only enterprise blockchain solution. Other names either have privacy and security issues or are advertising untested ideas.”
How does it help Vanguard in the long term?
For now, updates on the pilot platform are very few, and specific details remain obscured. The company maintains that its primary assignment is geared towards minimizing investment costs and limiting the occurrence of currency hedging.
Vanguard’s intentions to implement blockchain is seen as a challenge to most financial giants. If this bid is successful, Vanguard will push its way into the ranks of current financial giants JP Morgan and Cities Group.
By minimizing costs and increasing efficiency, Vanguard can provide a better trading system that what is currently available. If this succeeds, Vanguard would have created a unique niche where it can grow before competitors arrive.
How does it affect Blockchain?
Past cryptocurrency, blockchain implementations have been few and far in between. Numerous analysts predicted a sudden end for blockchain filled with failures. If this partnership is successful, it would not only transform the currency market but also shake other financial giants. Furthermore, it would prove the viability of blockchain and its application in the financial sector. Vanguard intends to create a matching system that would bypass banks and allow direct trade between customers. This will drastically reduce the cost of operations and increase efficiency.
For now, Symbiont continues to aggregate funding to power its smart contract implementations. With the $20 million gained from Series B funding, Symbiont is expected to expand operations and acquire better equipment. Soon, Symbiont may become a powerful competitor in the financial sector and very likely also a household name.