Northern Trust and IBM collaborate on private equity blockchain technology

Northern Trust has collaborated with IBM and other key stakeholders to launch the first commercial deployment of blockchain technology for the private equity market.

IBM, the multinational technology company, is actively working with companies to make blockchain ready and integrated for businesses.

While private equity returns can be attractive, the infrastructure supporting private equity has seen little innovation in recent years. Investors are seeking greater transparency, security and efficiency. Financial institutions have been looking to increase their investments in blockchain to make some transactions more efficient.

To address this need, Northern Trust and IBM have built a security-rich blockchain based on the Hyperledger Fabric. It is available for use for managing the administration of a private equity fund managed by Unigestion, a Geneva, Switzerland-based asset manager with $20 billion in assets under management.

“Blockchain is an ideal technology to bring innovation to the private equity market, allowing Northern Trust to improve traditional business processes at each stage to deliver greater transparency and efficiency,” said Bridget van Kralingen, Senior Vice President, Industry Platforms, IBM.

“Based on the Hyperledger Fabric and secured by IBM Blockchain’s high security business network, IBM collaborated with Northern Trust to build a powerful new enterprise solution using blockchain for the private equity industry.”

“Northern Trust anticipates substantial opportunities to bring improvements to the private equity market by using blockchain technology,” said Justin Chapman, global head of market advocacy and research at Northern Trust. “This is an important first step to connecting participants much more effectively, including investors, managers, administrators, regulators, advisors and auditors.”

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