The blockchain has just disrupted another niche. UK-based Nivaura in partnership with Microsoft’s Azure cloud has proved in a test case that the public ledger can be used to support regulated assets. The blockchain is an increasingly attractive option as the payments industry continues to embrace cryptocurrencies and even digital fiat money.
The technology was created by Avtar Sehra, Nivaura’s CEO, chief product architect and a theoretical physicist who switched careers only to uncover a bunch of inefficiencies in investment banking.
The fintech startup tested its technology by performing the registration, clearing and settlement functions on a pair of principal protected notes (PPN) tracking the FTSE 100 index, one of which relied on the Ethereum network and the other that relied on traditional methods, then compared results. The experiment was successful. If the platform catches on among investment banks and even venture capitalists raising new funds, among others, it could lead to a paradigm shift in how investment products are designed, leaving certain third-party service providers and their hefty fees out in the cold.