In this Q & A blog Hirander Misra explores how the GMEX Fusion digital capital markets technology suite is using IBM Blockchain Platform to power live transactions for DAG Global on behalf of customers across two leading cryptocurrency exchanges
On 19th September 2019, GMEX Technologies Ltd (GMEX); a wholly owned subsidiary of GMEX Group, which provides multi-asset post-trade business and technology solutions, announced that it was collaborating with IBM (NYSE: IBM) to enable the GMEX Fusion Digital Capital Markets technology suite (GMEX Fusion) on IBM Blockchain Platform (IBP).
What does the collaboration involve?
Designed to support multi-cryptocurrency transactions, GMEX Fusion is now available to clients across multiple cloud networks using the IBM Blockchain Platform built on Hyperledger Fabric, an open source project of the Linux Foundation.
What is being done in practice?
Currently in use by multiple exchanges and custodians in both traditional and hybrid environments that include distributed ledgers, GMEX Fusion has a direct Blockchain adaptor interface to IBP allowing connectivity between different nodes. GMEX Fusion is being used by DAG Global (which aims to be the UK’s first digital merchant bank) to execute and settle Bitcoin and Ethereum trades, transferring BTC/ ETH between customer accounts held with two leading cryptocurrency exchanges, Coinbase and Kraken.
Why is this ground breaking?
This technical advancement enables institutional investors with a hybrid network to support both traditional and digital assets. This is a unique industry approach as it will enable multiple pools of liquidity to connect with multiple custodians with a single aggregated trading, clearing and settlement solution. GMEX Fusion powered by IBP provides an institutional solution which satisfies the growing demands for digitally enabled market infrastructure fit for regulated environments.
What is IBP?
IBM Blockchain Platform is a flexible, enterprise-grade blockchain platform built on Hyperledger Fabric. It provides a secure platform to build, govern, operate and grow blockchain networks, with the ability to deploy components in multiple cloud or on-premise environments.
What is GMEX Fusion?
GMEX Fusion delivers state-of-the-art trading and post trade digital asset solutions for traders, exchanges, clearing-houses, central securities depositories (CSDs) and custodians, using the latest hybrid blockchain technology. It has a direct Blockchain adaptor interface to IBP allowing connectivity between different nodes. It handles multiple types of digital assets; including cryptocurrencies, security tokens, tokenised commodities and margin traded crypto derivatives; with inter-bank message flows to facilitate settlement downstream, and exchange messaging upstream. It can also be interfaced with IBM Blockchain World Wire, to enable cross-border payments in near real-time, with the use of stable coins and other tokens.
What does this mean for institutional investors?
Institutional investors have increasing interest in digital assets and require enterprise-grade market infrastructure which can be integrated with existing technology and processes to run in properly regulated environments. A new approach for supporting these assets in areas such as trading, clearing, settlement, registration, custody and management of traded cryptocurrencies is now possible using GMEX Fusion.software.
What does IBP enable GMEX Fusion to support?
IBM Blockchain Platform enables GMEX Fusion to support multiple types of digital assets including cryptocurrencies, security tokens, tokenised commodities and margin traded crypto derivatives; with inter-bank message flows to facilitate settlement downstream, and exchange messaging upstream.
The work underway with GMEX and DAG Global is further evidence that IBM Blockchain Platform is being used to solve important financial services industry problems, in real production environments. It is a foundational technology that can help merge old architectures with new, creating a hybrid approach to support the growing demand for digital assets and IBM was quoted as being excited to be working with GMEX on this pioneering approach.
ForumCustody and ForumWallet, part of the GMEX Fusion product suite, include Digital Custodian and Vault capabilities integrated into the ForumMatch hybrid exchange trading platform and ForumDetect advanced market surveillance system. The GMEX Fusion solution framework fully supports multiple cryptocurrencies and can also be used to tokenise existing securities and assets, as well as facilitate deposits into internal hot, warm and highly secure cold storage wallets, with trading and withdrawals into external wallets as required. The GMEX Fusion suite also includes ForumClear, the real-time risk-based clearing system, delivering functionality such as position keeping, credit checking and margining plus proven digital exchange capability. For more information, please follow this link.
GMEX Fusion IBM Blockchain Platform Ecosystem
GMEX Fusion IBM Blockchain Platform (IBP) OTC Trade Process
About IBM Blockchain
IBM is recognized as the leading enterprise blockchain provider. The company’s research, technical and business experts have broken barriers in transaction processing speeds, developed the most advanced cryptography to secure transactions, and are contributing millions of lines of open source code to advance blockchain for businesses. IBM is the leader in open-source blockchain solutions built for the enterprise. Since 2016, IBM has worked with hundreds of clients across financial services, supply chain, government, retail, digital rights management and healthcare to implement blockchain applications, and operates a number of networks running live and in production. The cloud-based IBM Blockchain Platform delivers the end-to-end capabilities that clients need to quickly activate and successfully develop, operate, govern and secure their own business networks. IBM is an early member of Hyperledger, an open source collaborative effort created to advance cross-industry blockchain technologies. For more information about IBM Blockchain, visit https://www.ibm.com/blockchain/ or follow us on Twitter at @ibmblockchain.
About GMEX Group
GMEX Group is a set of companies that offer leading edge innovative solutions for a new era of global financial markets by being a global provider of innovative multi-asset exchange trading and post trade business solutions and technology ecosystems.
Our key business solutions enable the creation and operation of cost effective electronic exchanges and post trade infrastructure in multiple asset classes including equities, debt, FX, derivatives, commodities, cryptocurrencies and digital tokenised assets.
We operate in both developing and developed markets through the establishment of cohesive business and technology ecosystems. GMEX offers the added benefit of interconnection to multiple partner exchanges, to create global networks of liquidity.
The GMEX Market Advancement Programme (MAP) is all about partnerships and creating an ecosystem with exchanges and post trade market infrastructure operators to deliver centralised, decentralised & hybrid solutions in a collaborative fashion.
GMEX Group is comprised of four main businesses:
- GMEX Technologies is a provider of multi-asset traditional and digital exchange trading and post trade technology through a unique partnership driven approach
- GMEX Innovation conducts R&D of technologically advanced new product solutions for exchange trading, clearing and settlement including hybrid and DLT Blockchain solutions delivered by GMEX Technologies as GMEX Fusion
- GMEX Services provides strategic consultancy, implementing services & support for exchanges and market infrastructure providers across asset classes including digital tokenised assets
- GMEX Investments makes selective seed and early stage strategic equity and token investments into market infrastructure and related Fintech companies