Fragmos Chain is happy to announce its fund raising: euro 1.1 million.
These funds have been brought by external investors, founders and Bpifrance.
Fragmos Chain is the first Blockchain platform in Europe to enable the efficient management of Derivatives products traded on major financial markets. The market size is huge, US dollars 600 000 billion in volume. Fragmos Chain will dramatically transform post-trade management worldwide, through the elimination of manual tasks and redundancies between financial institutions.
Thanks to the funds raised, Fragmos Chain will continue to build its top-notch team with expertise in capital markets and technology and accelerate its technological development.
Address Derivatives management simplification needs
Derivatives products, which include Over The Counter (OTC) Derivatives, repurchase agreements, securities lending and structured products, represent a major market: the volume reaches US dollars 600 trillion. The management of these products is particularly complex and expensive because of their advanced technicity.
Fragmos Chain develops a Blockchain-based platform which dramatically simplifies the entire post-trade process and management of these products. All financial institutions, including Investment Banks, Asset Managers, Private Banks, Hedge Funds, market infrastructures, are concerned, in all major financial locations in Europe, North America and Asia.
This approach is based, in particular, on research conducted by leading consulting firms. McKinsey has evaluated at 4 to 7 billion US dollars the opportunity of value creation for OTC Derivatives only
Euro 1.1 million raise
These funds raised are brought by Business Angels in France and in Switzerland and by the company’s founders, Daniel Ivanier et Charles Kremer. Bpifrance also participates through a repayable advance.
A first in Europe: a Blockchain platform to automate Derivatives management
Fragmos Chain platform is a first in Europe. It uses two recent technologies: private Blockchain or DLT (Decentralised Ledger Technology) and Smart Contracts. This is one of the first platforms to innovate in the Capital Markets landscape where initiatives are still limited because of product complexity.
Fragmos Chain uses market standards to facilitate a quick deployment in the financial Industry: R3’s Corda Blockchain technology (https://www.r3.com/) and CDM data model (Common Domain Model) designed by the ISDA for Derivatives (https://www.isda.org/2019/03/20/isda-publishes-cdm-2-0-for-deployment-and-opens-access-to-entire-market/).
Platform development acceleration
In 2019 Fragmos Chain has developed the first release of the platform, focused on interest rate swaps. The funds raised will allow Fragmos Chain to accelerate its platform development and cover a much broader scope: Rates derivatives, Equity swaps, Repurchase agreements, Securities lending. To that end, the company is currently recruiting engineers – specialists in finance and blockchain – as well as experts in market operations.
Daniel Ivanier, Fragmos Chain’s founder and CEO, explains: “Derivatives lifecycle management includes many manual and costly processes, and their operational and regulatory risks are high. The financial industry moves towards a significantly more fluid market, with no operational errors and no redundancy between financial institutions.
Thanks to the trust and support of our high-profile shareholders, which we are very thankful for, we will quickly deploy our platform to meet the market simplification need in a timely fashion, through the synchronisation of trade data between institutions and the intelligent automation of all post-trade processes.”