Barclays sponsors Blockchain Hackathon to explore derivative contracts


The British investment bank Barclays is sponsoring a hackathon to find the best blockchain solution to increase the efficiency of derivatives processing, according to an announcement published on August 9th. Barclays is collaborating with other majors such as Deloitte, the International Swaps and Derivatives Association. (ISDA) and Thomson Reuters for the event.

During the two-day DerivHack hackathon, participants will have the opportunity to implement their ideas and apply the ISDA common domain model (CDM) to distributed general ledger technology. The ultimate goal of the event is to find solutions to use cases in post-trade processing of derivative contracts.

The ISDA CDM provides a standard digital representation of events and processes that can occur during a derivative trade, presented in a machine-readable format. The product is designed to improve consistency and foster interoperability between companies and platforms.

According to the announcement, Barclays will establish complex use cases to simulate the derivatives market, such as a review of post-trade derivative processing, a change in earnings efficiency, as well as providing sample business data in the ISDA CDM to implement them.

At the start of this year, there were rumors that Barclays was reviewing the possibility of opening a cryptocurrency trading desk. An anonymous source reported that the bank was evaluating whether the customer's interest was sufficient to provide encryption services. Later, the CEO of Barclays, Jes Staley, refuted the rumors, saying:

"Cryptocurrency is a real challenge for us because, on the one hand, there is the innovative side of this and wants to stay in the forefront of improving technology in finance … On the other side, there is the possibility that cryptocurrencies are used for activities that the bank does not want to be part of. "

In July Barclays filed two patent applications related to digital currency transfer and archival blockchain data, both published by the US Patent and Trademark Office. The first patent describes a system of digital currency transfer from the payer to the recipient that will securely authenticate the identities of both, as well as validate and record the transactions. The other concerns the storage and approval of data and claims related to specific entities.

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