The biggest data challenge facing traditional institutions is integrating data and data sources from public blockchains into traditional client reporting tools to create a standard and unified portfolio view, according to Justin Chapman, group head of Strategic Partnerships, Digital and Financial Markets at Northern Trust.
Chapman said Northern Trust is addressing the issue by integrating blockchain data into its digital asset platform. “Integrating this blockchain data feed into Northern Trust’s digital asset platform allows us to provide a consistent and standard view to our clients,” he told Traders Magazine.
On August 10, Northern Trust entered into an agreement with Lukka to deliver an institutional-grade digital asset reporting capability and expand the bank’s access to digital asset data. The new capability will provide clients with enhanced reporting on digital asset data, including transaction history and point-in-time balances with historical views, according to a press release.
Under the agreement, Northern Trust will leverage Lukka’s data platform to support connectivity across more than 100 blockchains and more than 400 centralized and decentralized exchange sources, as well as custodians, OTC desks, wallets and on-chain activity, according to the bank.
“Northern Trust’s collaboration with Lukka provides an institutional reporting service for clients who hold digital assets with other custody providers,” Chapman said.
Northern Trust said the platform will allow it to ingest wallet, balance and transaction data and incorporate data from public blockchains into its existing services. Chapman said Northern Trust can connect to more than 100 blockchain protocols and more than 1,900 venues and custodians to pull wallet, balance and transaction data.
The bank said Lukka’s platform is designed to ingest, normalize, reconcile and report on complex on- and off-chain activity. The platform supports institutional use cases including digital asset data management, reporting, valuation, compliance and risk workflows, according to Northern Trust.
Chapman said the integration will allow clients to access digital and traditional asset information through Northern Trust’s existing tools.
“Clients benefit from a single, institutional-grade view across digital assets — wallets, balances, and transactions — and traditional assets via Northern Trust tools,” he said.
Northern Trust said the capability is being introduced as institutional participation in digital assets grows and as clients seek access to digital asset data alongside traditional asset services.
“As broader market interest and participation in digital assets and blockchain technologies grows, Northern Trust’s strategy is to offer our clients interoperability between digital and traditional products. This enhanced capability allows clients to receive reporting on digital assets not custodied at Northern Trust,” Chapman said.
Chapman said Northern Trust intends to make digital asset reporting available alongside its traditional asset services: “Digital asset reporting will be available alongside traditional asset services to ensure accurate, real time portfolio insights.”
Northern Trust said the Lukka platform will support standardized data aggregation and normalization across a broad ecosystem of blockchain networks and digital asset service providers. The bank said this will support scaled digital asset reporting and the ingestion of wallet, balance and transaction data.
“Northern Trust’s approach to provide and manage access to markets holistically by considering digital and traditional markets together continues, and we see data as a key pillar of this work,” Chapman said.
