Blockchain Terminal to Offer Compliance in Cryptocurrency For Hedge Funds

A platform has developed a terminal to help institutional investors and hedge funds buy and trade cryptocurrency with ease, all the while delivering transparency and compliance through state-of-the-art technology.

Blockchain Terminal is led by a Wall Street veteran who has served as a chief information officer at two of America’s biggest asset management firms. Known as BCT for short, the desktop system combines the resources that analysts, portfolio managers, traders and chief compliance officers need to capitalize on investment opportunities.

The terminals boast large monitors that provide instant access to critical information, and they’re furnished with USB ports so hardware wallets can be accessed. Mobile and tablet versions of the interface are expected to follow, meaning real-time data can be accessed on the move.

This comes as interest in cryptocurrency among hedge funds continues to grow at a steady pace. A recent study by BarclayHedge found 25 percent of managers are already investing in cryptocurrency or intend to begin doing so in the coming six months. Meanwhile, a further eight percent are exploring the possibility.

Meanwhile, research from AutonomousNext suggests there was an explosion in the number of crypto funds in 2017. Currently, it is estimated up to $5 bln worth of crypto assets are being managed across more than 225 funds.

Compliance as a cornerstone

In its white paper, BCT says that the 2008 financial crisis and headline-grabbing cases of fraud, when coupled with the high fees that investors are paying for diminishing returns, have transformed attitudes when it comes to transparency, accountability and compliance.

The cornerstone of its platform is ComplianceGuard technology. Pre-installed on every terminal, BCT says it is “designed to exceed the most robust hedge fund industry compliance requirements.” The system has been tested through pilot installations at 20 hedge funds.

BCT’s ledger utilizes two Blockchains simultaneously. The first, which is local and private, allows a hedge fund’s sensitive information to remain confidential. Meanwhile, all transactions are time-stamped and aggregated on the global Blockchain, meaning audits can be conducted on an ad hoc basis remotely and immediately whenever compliance problems emerge. Any accompanying documents and notes are also preserved in such a way that they cannot be tampered with.

There’s an app for that

BCT says it has a “living, breathing community” of developers who have created an array of third-party applications for use on terminals helping to speed up the adoption of its technology across the industry. Exchange integrations will allow the BCT to display data on “the vast majority of approximately 1,400 cryptocurrencies, all in a compliance-vetted environment.”