Why Broadridge is
Investing Millions in Blockchain Voting
Castillo | Published on October 3, 2016
at 12:38 GMT
Financial services firm Broadridge recently had a coming out party as a leading
the New York investing tech provider had previously voiced an interest in
blockchain, it wasn't until recently it invested $95m in a deal that will find
it acquiring new technology assets as part of a bid to develop client-focused
distributed ledger services. Later that same week, it hosted a blockchain-focused
breakfast with 50 of its clients and technology partners including Credit Suisse
Broadridge's more aggressive moves in the blockchain space were preceded by
internal testing and, more notably, investments in industry startups. Earlier
this year, the firm participated
in a $60m investment in New York-based startup Digital Asset Holdings alongside BNP
ICAP and the
investment hasn't just been in other companies. The firm has devoted 30
employees to develop multiple proofs-of-concept for its clients, focused on
areas such as business communications and trade processing.
moderating a panel at a breakfast last month, Broadridge global head of strategy
and blockchain lead, Vijay Mayadas, told CoinDesk that strong demand on the
client side led the firm to begin devoting significant resources to start
capturing some of that interest.
terms of accelerating the adoption of blockchain, we already have the
industry connectivity, we already have the platform, and we have the
clients. So we feel we’re uniquely positioned to take blockchain, figure
out how to really solve some of the pain points and bring solutions to
market very quickly."
Fuel for the fire
ways, the $95m acquisition of technology assets from Inveshare can be looked at
as a key driver for bridging blockchain with some of the services that
Broadridge offers, including mechanisms for proxy voting, or processes by which
other parties are brought into the corporate voting process.
finds Broadridge agreeing to pay $95m for the assets, with an additional $40m
due on delivery of the blockchain applications.
Broadridge plans to use the assets it acquired to develop blockchain
applications that let stockholders vote at investor meetings in which they were
unable to attend, as well as other services connected to its proxy
Broadridge explained that the Inveshare technology would be used to accelerate
the development of blockchain-based proxy applications by increasing the
transparency of vote confirmation and reducing the complexity of the current
is not sharing its development timeline, other than saying it intends to be the
"first to market with a complete proxy blockchain solution".
statement, Broadridge president and CEO Richard Daly confirmed that applications
to its proxy voting services are a major focus moving forward.
"Integrating blockchain technology into the proxy process has the potential to
drive significant benefits for all participants,” he said.
Ultimately, both the firm and those attending its breakfast said that the goal
is to shave operating costs – and maybe make a little bit of money on the way.
at the event, Chris Church, chief business development officer for Digital
Asset, argued this point.
that should the technology take off those money-saving mechanisms could turn
into money generators.
who previously worked as the CEO of SWIFT, told attendees:
may take 10 years to get widespread adoption. But the people in this room,
the people Broadridge invited, need to be building now."
Broadridge image via Michael del Castillo
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