US Custody Bank Northern Trust Receives Two US Blockchain Patentsbr>
Northern Trust, a major US custody bank, has been awarded two US patents for blockchain technology inventions for a range of fund administration activities.
The company submitted a number of patent applications to the US Patent and Trademark Office (USPTO) for inventions it developed to support the efficient, secure and transparent management of lifecycle events within private equity fund administration.
The USPTO has issued patents for two of Northern Trust’s technology inventions. These include US Patent No. 9,992,022, systems and methods for digital identity management and permission controls within distributed network nodes, and US Patent No. 9,990,504, systems and methods for generating and maintaining immutable digital meeting records with distributed network nodes.
The company’s blockchain development is part of a broader digital strategy for asset servicing, which includes robotic processing, artificial intelligence (AI) and the proactive deployment of emerging technologies.
“We have developed a number of blockchain innovations that may be applied to multiple business activities and product offerings, with private equity fund administration being only one example of many potential use cases,” said Justin Chapman, Global Head of Market Advocacy & Innovation Research at Northern Trust. “Our solutions are designed with the intention of increasing value for our clients by promoting asset safety, reducing transactional friction, increasing transparency and driving efficiency in the investment lifecycle.”
Pete Cherecwich, president of Corporate & Institutional Services at Northern Trust, said that researching and identifying new ways to leverage emerging technologies to deliver new and innovative solutions to their clients is critical to their collective success.
“Blockchain technology in particular has the potential to drive major industry-wide improvements and could significantly change how financial transactions are conducted,” said Cherecwich.
In February 2017, Northern Trust launched the first commercial deployment of blockchain technology for the private equity market. In March of this year, the company developed a solution that gives audit firms the ability to run their own blockchain nodes, which provide the data necessary to perform audits in real time.