BlackRock will test a private blockchain platform via the money managing system Aladdin for its custody bank partners.
Dubbed Aladdin Provider, the private blockchain system will create a more transparent and seamless processing between the world’s largest asset manager and its custodians.
“We look at technology as a great efficiency provider for investing for custodial assets, for communicating with our custodial clients, for communicating with our employees, for communicating with our clients,” BlackRock chairman and CEO Laurence Fink, who plans to expand the Aladdin Provider beyond the asset manager once testing proves to be successful, told BlockTribune. “So, it is the key element that is going to transform BlackRock. As we now have Aladdin Provider working with the custodial banks, ultimately, it’s going to simplify our trading, [and] trade entry compliance working alongside the custodial bank to create so much more efficiency for users across the Aladdin system.”
In addition, BlackRock’s third-quarter 2017 report showed that Aladdin-powered technology and risk management revenue has increased by 15% year-over-year. According to MarketsMedia, there has also been a higher demand for BlackRock’s Aladdin Risk for Wealth Management, which it launched two years ago. Fink noted that the firm sees demand from China, North America, and Europe. Five clients are currently live on the platform.