A working group of financial giants, including the Canada Pension Plan Investment Board (CPPIB), has successfully tested a new blockchain-based system for processing equity swaps.

Axoni, a New York City-based blockchain company, Axoni, and a working group of firms, which includes CPPIB, Goldman Sachs, J.P. Morgan, Citi and Credit Suisse, announced they have completed a months-long pilot test of a new peer-to-peer blockchain infrastructure for equity swaps utilizing so-called “smart contracts”.

The firms are seeking to reduce operational costs and errors, and to allow real-time data access for both client and regulatory reporting, by utilizing a blockchain-based processing system.

“Equity swap data is infamously complex and difficult to manage, making it a terrific fit for distributed ledger technology. We’re delighted to have reached another key milestone alongside our partners on this project and grateful for their collaborative efforts to demonstrate how powerful this tech can be,” says Greg Schvey, Axoni CEO, in a statement.

“The contribution from investment managers to this effort signifies AxCore’s potential to add value end-to-end. Fewer valuation disputes, less reconciliation and real-time access to data would benefit all of the industry,” adds Adam Herrmann, global head of prime finance at Citi.