Vanguard to Use Blockchain Technology for Index Data Sharing

Vanguard, in collaboration with the Center for Research in Security Prices, and technology provider Symbiont, is leading an effort to simplify the index data sharing process through blockchain technology. This partnership between the three organizations will enable index data to move instantly between index providers and market participants over one decentralized database. Over the last several months, CRSP has distributed daily index data to Vanguard in a testing environment through Symbiont’s blockchain platform. Delivering the data via a blockchain and automating workflows with smart contracts has served to expedite data delivery, eliminate the need for manual updates, and reduce risks. Currently, index data transmission, which is essential to many operations within the financial services industry, including portfolio construction and strategy execution, relies on multiple parties and distribution channels to reach investment professionals.