Mutual fund giant Vanguard Group is testing a new peer-to-peer foreign exchange (FX) trading platform for assets managers through a partnership with Symbiont, a blockchain technology provider, according to a Bloomberg report.
The trading platform will enable asset managers to trade currencies with one another, avoiding the need for investment banks. According to Bloomberg's sources, Vanguard has been testing this platform for two months. The platform has reportedly "handled some trades."
“Vanguard is currently piloting a project focused on improving the efficiency and reducing risk of FX hedging,” Carolyn Wegemann, a Vanguard spokeswoman tells Bloomberg. Adding that the firm's goal is to “lower the cost of investing for all investors."
This is not the first time Vanguard has tested the use of blockchain technology. Back in June, the firm also partnered with Symbiont to leverage blockchain to improve how it reviews index data.