LONDON & NEW YORK–(BUSINESS WIRE)–LedgerEdge, the next-generation trading ecosystem, has announced that it is going live with the first regulated corporate bond trading platform built using distributed ledger technology (DLT ), the technology that underpins blockchain ecosystems and digital marketplaces. LedgerEdge is powered by Corda by R3, a scalable and licensed peer-to-peer distributed platform that supports applications that promote and ensure digital trust between parties in regulated markets.
The LedgerEdge digital market is a decentralized system fully regulated by the Financial Conduct Authority as a Multilateral Trading Facility (MTF). LedgerEdge was designed in collaboration with leading global banks, asset managers and market makers. The system is operational with 45 UK MTF firms and 70 globally trading on the platform or in the process of onboarding. These include seven of the top 10 sell-side dealers as well as over 30 major asset managers.
Trading has launched with increasing liquidity as more participants join the ecosystem. LedgerEdge has received great market feedback – 30% of traders from Officeit is 2022 Business Intentions Survey said they intend to use LedgerEdge to execute corporate bond trades this year, making LedgerEdge the number one platform for intended use of corporate bonds. Additionally, 33% of traders said they plan to use LedgerEdge for pre-trade data, reflecting LedgerEdge’s strength in bringing new and differentiated liquidity to the market.
LedgerEdge has built an ecosystem using distributed ledger technology to modernize institutional-grade trading services and protocols in the $41 trillion global corporate bond market, much of which is still done over the phone. It allows merchants to maintain full control over their data and use smart contracts to reveal only certain information, such as order and prices, under specific conditions. The ability to share data using intelligent conditional, bilateral and anonymous protocols increases the amount of pre-trade data available and thus improves liquidity transparency. Smart contract orders also help reduce market impact, as supply and inventory data only reaches merchants with compatible offers.
“The first fully regulated bond trading platform based on distributed ledger technology is a significant milestone for the industry,” said David Nicol, CEO and co-founder of LedgerEdge. “Credit markets are on the cusp of a digital transformation that is affecting other asset classes, and we are excited to be at the forefront of this important market. Customer feedback has been instrumental in building our ecosystem, and I want to thank key participants for being an integral part of our development. I look forward to continuing this collaborative approach as the volume increases and we continue to develop the product. We bring a new, modern ecosystem that emphasizes control and ease of execution in a historically illiquid market.
“Today’s announcement marks a major milestone for LedgerEdge,” said David Rutter, co-founder of LedgerEdge. “It is the culmination of pioneering ideas, hard work and a strong commitment to customers. Our ambitions have now come to fruition as we bring to market a next-generation platform that fundamentally solves the challenges of localizing and promoting data liquidity and ownership. The decentralized system we have built gives us the opportunity to rewrite the architecture of the bond market, and corporate bonds are just the start.
Founded in 2020 to improve engagement between market players, starting with corporate bond trading, LedgerEdge is the next-generation ecosystem for corporate bond trading – powered by secure technology, reliable and advanced. LedgerEdge gives you more control, better opportunities, and better execution. For more information, please visit www.ledgeredge.com or our LinkedIn and Twitter pages.