U.S.banks and other financial institutions remain skeptical about the Bitcoin virtual currency phenomenon, but that hasn't stopped them from studying and appreciating the underlying concepts.
In particular, Wall Street is impressed by Bitcoin's notion of blockchains, which establish trusted mechanisms for tracking the anonymous transfer of funds from one person or institution to another.
The Depository Trust & Clearing Corp.says it has enlisted IBM, in partnership with Axoni and R3, to establish an operational blockchain network for the derivatives it tracks - a sort of distributed general ledger framework for tracking post-trade processing, including credit default swaps.
DTCC says it intends to develop a comprehensive distributed ledger network for derivatives with peer nodes at participating financial firms.
Such conservative outlets as the Wall Street Journal seem to approve of the idea, noting that the technology could "save banks tens of millions of dollars on fees for derivatives trades."
"IBM, Axoni, and R3 offer valued distributed ledger technology expertise as well as a strong commitment to the Hyperledger community and industry standards," said DTCC Deriv/SERV CEO Chris Childs.
"We are pleased that they have chosen to leverage their collective expertise and collaborate with us on this initiative, which will allow us to build the best solution for the marketplace while minimizing cost to the industry and expediting our speed to market."