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Northern Trust adds smart contract capability to blockchain

BlockchainNorthern Trust has expanded its private equity blockchain and deployed legal clauses as smart contracts directly from a digital agreement in what it has called an “industry-first”.

The Chicago-based firm’s pioneering application has leveraged advanced software developed by legal-technology startup Avvoka. This enables participants to negotiate, review and digitally sign legal agreements.

The technology can also be set up on other platforms, making it possible for a broad use in “generating digital documents and applying conditions beyond legal agreements,” according to the financial services company.

“As financial markets move towards digital processes, Northern Trust will continue to drive the technology innovation that will redefine our industry,” said Pete Cherecwich, president of corporate & institutional services at Northern Trust.

“The collaboration and innovation that led to this further breakthrough in blockchain technology is a testament to all parties involved,” he said. “The ability to leverage digital documents that include smart contract code across multiple platforms is a very significant step toward the future digital environment of securities servicing.”

This latest development in securities servicing has been deployed for Emerald Technology Ventures, a venture capital company with funds administered on Northern Trust’s blockchain in Guernsey.

Northern Trust company launched the “first commercial blockchain solution for private equity fund administration” in 2017.

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