BlackRock To Swap Equity On Axoni Blockchain Platform

The world's largest asset manager BlackRock BLK has joined the equity swaps network Veris, developed by blockchain company Axoni.

According to a recent announcement, the $9.5-trillion giant is in good company in using Veris considering that Citigroup Inc. C and Goldman Sachs Group Inc. GS have already joined the network.

BlackRock will use Axoni's platform to match trades and confirm all of its terms upfront and keep all parties synchronized on post-trade events including amendments, positions and cash flows through the lifecycle of the swap.

Axoni's service will help the firm "build scalability while mitigating risks in the investment life cycle beginning with equity swaps," said Mark Cox, COO of global investment operations at BlackRock.

Axoni said the deal "comes after years of engagement" with the asset management behemoth and other financial institutions "evaluating the use of a distributed ledger network for the post-trade management of derivatives, beginning with equity swaps." The firm's head of OTC Markets Carl Forsberg highlighted that BlackRock joining the platform is important since sell-side participants will benefit from the participation of a top swap counterparty.

The Veris platform was integrated directly in BlackRock's Aladdin asset management software — which is used by over 200 financial institutions — opening the doors for further adoption to come in the future.