David Rutter's new technology platform for corporate bonds, LedgerEdge, will provide a better scenario and guarantee greater liquidity for this constantly growing and developing market.
LedgerEdge is designed to offer and guarantee an ideal scenario where investors and entrepreneurs can exchange data and assets in the growing corporate bond market easily and safely. Although LedgerEdge is not yet available on its official website, the implementation of the new platform is in process, and according to its creator, David E. Rutter, this system will give the corporate bond market the possibility of enjoying true growth and evolution; something that from Rutter's point of view is not offered by the existing platforms available on the market.
Rutter, who is also CEO of the enterprise blockchain platform R3 and founder of LiquidityEdge, the US Treasury's trading platform, noted that the secondary corporate bond market needs an edge to develop properly. For the American businessman, current platforms only allow “data is monetized and filtered through fragmented and opaque markets that reduce the quality of the processes”. Therefore, referring to the new LedgerEdge trading platform, Rutter noted that it will solve all the challenges that the corporate bond market is currently facing, guaranteeing the provision of greater liquidity and ownership over bond data. “once and for all”.
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LedgerEdge, driving the adoption of new technologies
Rutter affirms that through the new platform, the corporate bond market will be able to adapt easily and safely to new technologies in development, considering that this has been one of the slowest to implement the adoption of technologies such as blockchain and artificial intelligence.
Therefore, LedgerEdge will take advantage of the potential qualities offered by AI, distributed accounting networks, known as DLT, and enclave computing to address market inefficiencies and weaknesses, while ensuring the location of potential investors to bring a higher level of liquidity to the market. Likewise, through the implementation of new technologies, the LedgerEdge platform will allow transactions to be carried out quickly and reliably, moving away from centralized data storage and avoiding possible leaks.
According to Rutter, the secondary market for corporate bonds is at the extreme of other types of markets, which have implemented blockchain technology and other technologies in development to significantly improve their processes. Likewise, the businessman points out that only 30% of the daily transactions carried out within the bond market are done electronically; The rest, an average of 41 billion dollars, are carried out in the traditional way.
On the other hand, Rutter points out that the new platform brings together a team of specialists in blockchain and other technologies. In this sense, the platform CEO will be David Nicol, team of IBM and R3; Ian Chicken, team of ICAP y BrokerTec as COO and Bob Bose member of the Banco Santander y NYSE Euronext as CTO. Likewise, the LedgerEdge platform will follow the same collaborative approach that was adopted in the R3 platform so that market participants can work in a joint development ecosystem.
David Rutter's platform will be licensed in the United States and the United Kingdom
To begin its operations, the LedgerEdge platform will be licensed as a Multilateral Trade Facility (MTF) in the United Kingdom and the necessary licenses to also operate in the United States. Since March of this year, the company behind the platform with the same name LedgerEdge was incorporated in the United Kingdom with David Nicol as its CEO.
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