uTrade unveils blockchain tech solution, GMEX the first taker
India-based uTrade Solutions has launched uClear, a blockchain tech solution for real-time clearing and settlement for financial markets.
The first taker is Global Markets Exchange (GMEX) Group. It will integrate uClear next month through its GMEX Technologies subsidiary and with the support of its development partner, Forum Trading Solutions.
Hirander Misra, CEO of GMEX Group and chairman of Forum, hopes that blockchain-driven clearing mechanisms will help both GMEX Group and its exchange clients “to adapt in an era of rapid change and facilitate greater transparency for the regulators”.
uClear comes with real time-risk management, reporting and transfer instruction generation tools, and is the first of its kind in India, uTrade claims.
It supports cash and derivative segments. The first stage of adoption will be led by the OTC segments without existing central clearing infrastructure, such as FX and the fixed income securities markets.
The solution is built on Multichain (described as the most adopted blockchain technology) and will enable exchanges and trading venues to clear trades post execution through a private blockchain.
“We believe blockchain is a very powerful technology that will dramatically change the way the financial services industry operates,” states Kunal Nandwani, co-founder and CEO of uTrade.
“Discussing blockchain today is like discussing the internet in 1996. There was lot of hype, a mix of potential and skepticism. Eventually the internet did change our lives for the better. The same is what we foresee with blockchain.”
He adds, however, that the adoption “may take a few years due to regulation, legacy infrastructure replacement challenges, and unwillingness to accept transparency”.