Blockchain forex startup Cobalt DL lands Citi backing

Blockchain-based forex post-trade processing network Cobalt DL has landed funding from Citi.

The size of the US bank’s investment is undisclosed.

London-based Cobalt aims to use distributed ledger technology to power a peer-to-peer network designed to reduce post-trade costs and risk for financial market participants.

Legacy systems currently used in forex trading often create multiple records for single trades adding extra paper work to transactions.

Distributed ledgers can create a single record of a trade all parties can see but none can tamper with, freeing up back and middle office resources.

Cobalt’s forex solution is set to launch in 2017 with 15 institutions already committed to the service.

Citi is one of the world’s largest trader of currencies globally and will also become one of Cobalt’s launch clients.

Citi’s global head of G10 FX James Binder said, “”We have been impressed with the way Cobalt DL is redesigning the post-trade FX infrastructure with its practical implementation of distributed ledger technology.

“The Cobalt DL solution has the potential to significantly improve post-trade services by cutting costs and reducing risk for our industry.”

Alongside the undisclosed investment Cobalt is announcing former Nasdaq NLX CEO Charlotte Corsswell as a strategic advisor at the company who will focus on strategic partnerships.

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