Security Settles on Ethereum in First-of-a-Kind Blockchain Transaction
In a first-of-a-kind transaction happening Friday, all it takes to switch from the old world of centralized clearing houses to the frontier of decentralized blockchains was to press a button.
A company called Marex is issuing two separate structured notes. Both notes were created using ResonanceX, an investing platform built by Guillaume Chatain, a former managing director at JPMorgan Chase. The first note will be settled the old-fashioned way, on Clearstream, the European clearing house.
But the second, otherwise identical note will be registered, cleared and settled on the public ethereum blockchain. All the issuer has to do to change this parameter is select a different option from the drop-down menu on ResonanceX's dashboard.
The parallel issuance will test the idea, on an apples-to-apples basis, that blockchain offers a less expensive way to clear and settle financial instruments. And if that proves true, ResonanceX will allow future issuers to pick one over the other as easily as if they were changing an order on Amazon.
At stake is more than just the business model of Clearstream, but of centralized clearing houses around the the world.