GFT’s tests demonstrate Digital Asset's DLT platform’s ability to handle equity trading volumes at peak

GFT, a provider of business, IT and software services to the financial services industry, has found that the Digital Asset (DA) platform can help reduce the barriers to enterprise adoption of distributed ledger technology (DLT).

GFT conducted an independent performance analysis of DA’s distributed ledger platform and has released test scenario and performance results. DA provided GFT with access to its platform’s code base and a production-like environment to simulate a typical trade day for a cash equities market and a real-time market simulation based on historical data.

According to the test results, the DA Platform can process upwards of 27,000 trades per second (which equates to approximately 81,000 DLT transaction updates per second) for a sustained period of time.

“This exceeds the peak US equity trading volumes, according to a January whitepaper by DTCC (Modernizing the U.S. Equity Markets Post-Trade Infrastructure),” GFT said. “Achieving this level of performance demonstrates that the DA Platform is capable of supporting the throughput of enterprise applications used by financial institutions.”

Digital Asset CEO Blythe Masters said that the test demonstrated that the throughput capacity of the DA Platform can meet the demands of major markets, adding that it has “validated that the highest standards of integrity and privacy do not sacrifice performance.”

“We believe the rigor of the test scenario’s construction and in the level of performance achieved demonstrates the DA Platform can handle peak trade volumes seen in US equities markets and scale to satisfy the performance requirements of large-scale financial institutions,” David Collins, Head of GFT’s Atlantic region, said.

In addition, the Depository Trust & Clearing Corporation (DTCC) this week announced the results of a study which demonstrated for the first time ever that DLT is capable of supporting average daily trading volumes in the US equity market of more than 100 million trades per day. It said:

“The study, which was conducted by Accenture with additional support provided by technology service providers Digital Asset (DA) and R3, proved that DLT can perform at levels necessary to process an entire trading day’s volume at peak rates, which equates to 115,000,000 daily trades, or 6,300 trades per second for five continuous hours.”

In a blog post, Digital Asset said these two independent studies have confirmed that its platform is “more than capable of handling the trade volumes processed by major equity markets.”