Dublin-based Irish Funds and Deloitte announced that they have collaborated to develop a blockchain-based proof of concept for regulatory reporting, HedgeWeek reported.

The collaboration project will be focusing on the Resident Investment Fund Returns regulation that involves Money Market & Investment Funds Returns Reporting – MMIF and will result in the development of proof of concept (PoC), by leveraging blockchain and smart contract technology. By doing so, the project will create a platform for the regulatory reporting that can be accessed by the reporting entity and regulator.

“Regulatory reporting is a key obligation for our members and is an area of priority focus for the Central Bank of Ireland in 2017. This project and the development of the proof of concept with Deloitte will benefit industry, the regulator and demonstrates how Ireland is actively embracing fintech,” Pat Lardner, CEO of Irish Funds, stated, as reported by HedgeWeek.

The blockchain application will be tested by PoC for improved compliance, enhanced transparency as well as to determine the cost-efficiency of the nascent technology. Various participants from numerous global asset servicing and fund management institutions will be a part of this collaboration including Northern Trust, State Street, and Metzler.

“We are delighted to be working with Irish Funds and their members in demonstrating the value of blockchain technology in investment management. Blockchain technology has huge potential in financial services to reduce the cost and improve efficiency. This is an important step in bringing this to reality,” David Dalton, head of financial services at Deloitte Ireland, and sponsor of Deloitte’s EMEA Grid Blockchain Hub, said.

The blockchain project will be developed at Deloitte’s recently opened EMEA Grid Blockchain Lab in Dublin.