Broadridge to develop blockchain technology

Global fintech company Broadridge is aiming to develop the distributed ledger technology that was launched by Northern Trust in 2017. At the time, it was the first commercial deployment of the technology for the private equity market and was for use in managing a fund domiciled in Guernsey.

The two firms have agreed a deal that will see Northern Trust transfer its DLT platform for private equity asset servicing to Broadridge. Proponents of blockchain say that it has the potential to improve transparency, streamline business processes and reduce costs for the finance industry – and Broadridge will take forward development work and build on other initiatives.

Initially the solution will be made available to all PE funds domiciled in Guernsey and Delaware, including those administered by Northern Trust. Northern Trust’s PE clients will continue to benefit from the fund administrator’s high-end service and expertise, with the added benefit of having access to an industry-leading platform supported by a global company in financial technology.

‘The alternatives/PE marketplace is expanding rapidly and the technology needs of this evolving marketplace are underserved,’ said Eric Bernstein, Broadridge’s head of asset management solutions.

‘Broadridge’s unique position as a network enabler, and successful record in utilising blockchain technology, will allow us to help transform the private equity industry.

‘This is another example of Broadridge’s commitment to driving the innovation roadmap for the financial services industry and has the potential to be a real game changer.’

Pete Cherecwich, president of corporate and institutional services, Northern Trust, said: ‘Northern Trust pioneered the development of blockchain technology that supports the complex PE lifecycle. The platform delivers real-time insight and transparency to all parties, including fund managers, investors and auditors, and enables regulatory access when required.

‘For the benefit of our clients and the industry as a whole, it’s now time to hand over the reins to a technology provider with deep fintech expertise.

‘Broadridge’s administrator-agnostic position, coupled with its DLT leadership and global footprint, make them an ideal firm to open up this innovative technology to the marketplace, paving the way for the digitisation of the asset class.’