World first for Guernsey's financial services sector

GUERNSEY has been revealed as the location for the first-ever commercial use of blockchain technology for the private equity market.

ferbracheweb

Northern Trust, the island's largest fund administrator, has built the security rich blockchain with experts from IBM, working with the States of Guernsey and the Guernsey Financial Services Commission. It will be used to manage the administration of a private equity fund, domiciled in Guernsey, managed by Unigestion, a Switzerland-based asset manager with $20 billion in assets under management.

Economic Development president Deputy Peter Ferbrache said the blockchain launch represented an exciting opportunity for Guernsey.

‘Blockchain technology will be increasingly used and further developed by financial services providers across the globe in the coming years, so for Guernsey to be home to the first commercial venture of its kind in the world is not only very exciting, but is also a testament to the sort of high value innovation government wants to encourage, to help drive economic growth and economic diversification,' he said.

Policy & Resources Committee president Deputy Gavin St Pier added: ‘Guernsey has been at the forefront of innovation in the financial industry for many years. As a jurisdiction we continually monitor new technologies, support businesses in developing ground-breaking new ideas and provide a supportive environment where products can not only flourish but be first-to-market.

'The fact that this pioneering solution to the private equity market has been domiciled in Guernsey, and that Northern Trust has partnered with IBM to provide a secure cloud solution with a high level of cryptography to protect investor data, shows the commitment of Government to being at the cutting edge of financial services technology.’

Comments for: "World first for Guernsey's financial services sector"

markB

If Northern Trust and IBM developed this, are Gavin and Peter not jumping on there

achievements and flag waving for Government, but in fact didn't do anything to implement it, don't get me wrong if it brings in business then all well and good

but it feel to me like Gavin and Peter are taking the credit.

100% Donkey

markB

I agree - there's a lot of political hype here but given the amount of bad news that could unfold (Brexit), I don't suppose you can blame them....

markB

But Peter is head of Economic Development!! He and his department should be coming up with ideas like this to save us all from Brexit and Gavin, not high jacking other peoples ideas, hard work and expenditure.

It says in the report "shows the commitment of Government to being at the cutting edge of financial services technology" but it seems they didn't do anything just nick someone else's steam.

Anyway, That's politicians for you.

Rocquaine Pirate

100% Donkey do not be a pessimist Brexit is a good thing, you just wait and see.

Devil's Advocate

Apparently there was quite a lot of government involvement on the legal and regulatory side of things so some credit is due to the States. The whole thing could have been set up elsewhere but NT chose us because we were the best place to do it.

markB

but could put a lot of people out of work too, look out States social Security!!!

Paul

Don't know enough about this particular project but world first headline is a bit misleading. Many financial institutions have projects regarding Blockchain Technology. I attended a conference in 2012 on the subject when there were speakers from large European Banks. Another in 2014 stated that various countries were implementing the technology for such things as land registry. If these 2 huge USA companies have developed it further specifically for their fund clients and are using it in Guernsey great. However I fail to see what the real financial benefit this has specifically for Guernsey. as Mark B eludes to the main selling message is security and avoiding labour intensive audit, administration roles ultimately will suffer.