UBS will launch Live Ethereum Platform with Credit Suisse
These days, some of the best-known banks have unveiled a pilot designed to simplify compliance using Ethereum. Also known as the Massive Autonomous Distributed Reconciliation (Madrec) platform, this is a project released by USB, the Swiss banking giant, in partnership with Credit Suisse, Barclays, SIX, Thomson Reuters, and KBC.
Madrec aims to simplify things for banks
This project was designed to make it easier for banks to reconcile a large amount of data about their counterparties. Before the new program, all regulated firms worked with the so-called “legal entity identifiers.”
These identifiers are stored in a global data system and are used to execute transactions on behalf of clients. These transactions were executed even though some clients don’t have one of the codes.
But, starting with January 3, 2018, there will be a new regulatory change that is called the Markets in Financial Instruments Directive II. With this new program, all legal entities will need to have and use these codes.
Instead of mandating other institutions to perform these checks independently, these banks came with this innovative solution to save time and work. Madrec will do the entire work and it will be saved in the Microsoft Azure cloud.
Madrec was built over a period of seven months
Madrec was built over a seven-month period and it was created to integrate with identifiers endorsed by The Legal Entity Identifier Regulatory Oversight Committee. Instead of each company reconciling and checking the information and the results periodically, Madrec will have the power to ensure accuracy in almost real-time.
Peter Stephens, the head of UBS’ blockchain research and development, described in detail how this new blockchain infrastructure was built to save money and work. Stephens stated that: