A collaboration between multiple stakeholders examining the use of blockchain to manage and monitor regulatory reporting has proved a success.
Irish Funds, Deloitte, Northern Trust and State Street recently partnered to investigate how suitable blockchain could be for regulatory reporting.
The collaboration produced a proof of concept for regulatory reporting, with blockchain used to capture transactions, manage reporting with smart contracts capability and enhance compliance in a ‘RegChain’.
The result was increased transparency, something that advocates of blockchain have been banging the drum for since its creation.
According to the trial, blockchain’s suitability emerged across numerous areas, most notably acting as a secure store of data; with efficiency, smart contract capabilities and the ability to facilitate new reporting requirements also suggested.
Commenting on the project’s success, Irish Funds CEO Pat Lardner said this was the first step in bringing blockchain into the field.
“This foundation will enable additional development and progress to be made with other key stakeholders and confirms Ireland’s place as a leading location for fintech globally.”
The project used Ethereum and IPFS to help build the platform, with the end result being the successful design and development of a programme “leveraging blockchain and smart contract technology”.
One of the key findings of the project was how blockchain could be used elsewhere in regulatory operations. This study was focused on the resident investment fund returns, though incorporation of other regulatory reports is possible.
“It is excellent to see Irish Funds taking the lead and developing a forward-thinking approach to easing the regulatory burden of their members,” said Keith Fingleton, chief technology adviser at the IDA.
“Once again, it shows Ireland as a location to undertake innovative solutions, in a collaborative manner, to help solve complex business problems.”