PeerNova Engages with State Street on Blockchain-Based Capital Lineage Prototype

Sep 19 2016 | 10:12pm ET

Distributed systems specialist PeerNova has teamed with global financial services company State Street to develop a blockchain-based prototype system designed to enhance the tracking of investment-related assets and transactions.

The trial program is based on PeerNova's Cuneiform big data platform, according to the company. Cuneiform supports the speed and scale required by large financial institutions to report on performance while also incorporating key characteristics of blockchain technology, including immutability, verifiability, and security.

Using PeerNova's technology, the new program will track fund flows with greater certainty, thereby providing State Street more transparent, timely and auditable reporting methods for clients, the company said. 

Blockchain technology, which was largely dismissed by large financial institutions until early last year, is now thought to hold significant promise in giving cost, speed and security advantages to legacy back-office functions like clearing, transfer and custody.

Indeed, some 50 of the world’s largest financial firms are now part of R3, a consortium partnership working on the design and implementation of distributed ledger technologies in financial markets, while institutions such as the Bank of England are also exploring how to utilize blockchain technology in next-generation settlement systems.

Custody banks such as State Street manage trillions of dollars of invested capital on behalf of their clients, which include asset managers, institutions, hedge funds, private equity companies and other alternatives. "Tracking the flow of investment capital is critical for fund managers in calculating the performance of their investments," notes Hu Liang, senior vice president at State Street's emerging technologies center.

The prototype system is designed to track the lineage of capital with precision and verifiability, which if successful, could provide an increased level of detail more efficiently and more effectively, Liang said.

“PeerNova has been deeply engaged with some of the world’s largest financial institutions since early 2015 to solve pain points they have today,” added Dr. Naveed Sherwani, president and CEO of PeerNova. “Our unique approach to blockchain technology enabled us to identify practical solutions that can be implemented within existing banking infrastructures in the near term.”

Founded in 2014 and based in Silicon Valley, PeerNova has developed deep expertise in distributed systems, networking solutions, big data, compiler technology, and financial services. Combining the best of Blockchain and Big Data technologies, PeerNova enables financial institutions to securely and verifiably manage data to address their toughest reconciliation, audit and compliance challenges. 

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