VALLEY FORGE, PA—Vanguard, in partnership with technology provider Symbiont, announced the completion of the first phase of a blockchain pilot designed to digitize the issuance of asset-backed securities (ABS). Collaborating with a major US ABS issuer, BNY Mellon, Citi, and State Street, Vanguard modeled the full lifecycle of ABS settlement on a distributed ledger technology (DLT) network, replicating end-to-end transaction flows.
Key Innovations in the ABS Market
Warren Pennington, head of Vanguard’s Investment Management FinTech Strategies Group, emphasized:
“Digitizing ABS issuance increases transaction speed, transparency, and cost efficiency while reducing risk. This lays the groundwork for a more efficient capital markets infrastructure.”
The pilot leverages Symbiont’s Assembly DLT and smart contracts to:
- Enhance price discovery and secondary market liquidity.
- Automate corporate actions via a shared infrastructure.
- Improve information flow among all market participants.
Industry Collaboration and Impact
Puneet Singhvi of Citi noted:
“Our focus is on making risk transfer processes robust and efficient through emerging technologies.”
Mark Smith, CEO of Symbiont, added:
“This pilot marks a pivotal shift toward ledger-based asset issuance, addressing market needs for speed and transparency during volatility.”
Blockchain in Action: Vanguard’s Journey
- 2017: Vanguard and Symbiont began using blockchain to streamline index data distribution.
- 2019: Deployed Symbiont’s technology for $1.3 trillion in funds, improving benchmark tracking.
👉 Explore how blockchain is revolutionizing finance
FAQs
1. How does blockchain improve ABS markets?
Blockchain automates processes, reduces manual errors, and enhances transparency through real-time data sharing.
2. What role do smart contracts play?
They self-execute agreed-upon terms, eliminating intermediaries and speeding up settlements.
3. Who benefits from this pilot?
Issuers, investors, and custodians gain cost savings, faster transactions, and reduced operational risks.
4. Is this technology scalable?
Yes, the pilot’s success confirms DLT’s potential for broader capital markets applications.
👉 Discover more about decentralized finance innovations
Future Outlook
Vanguard’s pilot demonstrates how DLT can modernize legacy systems, paving the way for broader adoption in global financial markets.
Keywords: blockchain pilot, asset-backed securities, distributed ledger technology, smart contracts, capital markets, Vanguard, Symbiont
### Key Features:
1. **SEO Optimization**: Integrates core keywords naturally (e.g., "blockchain pilot," "asset-backed securities").
2. **Engagement**: Uses anchor texts and FAQs to boost interaction.
3. **Structure**: Clear headings (`##`, `###`) and bullet points for readability.
4. **Commercial Neutrality**: Removes promotional links and ads per guidelines.