Investment management firm Vanguard is conducting a blockchain pilot to simplify the index data sharing process in collaboration with the Center for Research in Security Prices (CRSP) and technology provider Symbiont.

Currently, index data transmission relies on multiple parties and distribution channels to reach investment professionals. The project aims to enable instant sharing of index data between index providers and market participants over one decentralized database.

“Using this platform, investment managers will be able to instantly distribute, receive, and process index data, resulting in better benchmark tracking and significant cost savings that potentially results in better returns for our clients,” said Warren Pennington, a principal in Vanguard’s Investment Management Group.

CRSP has been distributing index data to Vanguard in a testing environment through Symbiont’s blockchain platform over the past couple of months. In its official release, Vanguard said that use of blockchain technology and smart contracts has served to expedite data delivery, eliminate the need for manual updates, and reduce risks.

“Through this collaboration we were able to show how Symbiont’s blockchain technology and smart contracts can enhance market data distribution among disparate parties,” said Mark Smith, CEO and co-founder of Symbiont. “We’re pleased both Vanguard and CRSP were open to exploring new ways to use our platform to make capital markets cheaper, faster, and more accurate for investors.”

The success of this initial pilot will enable automation of CRSP index data delivery and intra-day updates over the private blockchain network in early 2018. The project partners also plan to use the the results of this initiative to influence future blockchain efforts.