Banco Santander has accomplished a blockchain pilot that it says improves the method of proxy voting throughout annual common conferences (AGMs).
For the challenge, introduced Thursday, Santander partnered with world fintech agency Broadridge and custodian banks JPMorgan and Northern Belief, describing it in a press launch because the “first sensible use of blockchain” for shareholder voting.
Nevertheless, it needs to be famous that different entities reminiscent of Nasdaq, the Abu Dhabi Inventory Trade and a gaggle of central securities depositories, together with Russia’s Nationwide Settlement Depository, have all carried out pilots, are growing techniques or have launched platforms across the use case.
The Broadridge-built answer – piloted beforehand in April of final yr – goals to enhance transparency within the world proxy voting system, whereas additionally growing safety, effectivity, safety and analytics, the discharge says.
The pilot was concluded on March 23 for the Spanish banking large’s AGM and noticed participation from Santander’s blockchain lab and Company Providers, which acted because the issuer’s agent. The blockchain answer was used to produce a “shadow” digital register of the proxy voting system happening in parallel utilizing the traditional voting mannequin.
Sergio Gamez, world head of shareholders and investor relations at Santander, mentioned that, for a listed firm like Santander, the AGM is likely one of the most vital company governance occasions.
“It is rather vital to make sure the participation by buyers and shareholders, and this yr utilizing blockchain expertise for the institutional vote has been an amazing assist by way of transparency and agility throughout the vote life cycle.”
As talked about above, Broadridge executed an analogous pilot targeted on proxy voting in collaboration with the identical companions final April. The challenge used a personal model of the ethereum blockchain as a backup system to extra conventional voting software program. The trial was carried out at an annual assembly at Santander Investments.
“The profitable completion of a second pilot together with the following part of our blockchain-based proxy voting answer demonstrates Broadridge’s continued dedication to growing progressive expertise options within the re-imagination and enchancment of worldwide proxy,” mentioned Patricia Rosch, president of investor communications at Broadridge.
Assembly picture through Shutterstock