PROVIDENCE – Santander Bank, which has branches in Rhode Island and Massachusetts, implemented a blockchain system for investor voting at its annual meeting in March, in Spain, its first such use of the technology in that application, Santander said in a press release.
The bank, along with Broadridge Financial Solutions, collaborated with J.P. Morgan and Northern Trust, conducting the pilot initiative on March 23.
Spring Forward: Expanding Access to Health and Wellness
As winter gives way to spring, many people take the opportunity to refocus on their…
Learn More
Blockchain technology, or distributed ledger technology, allows the decentralization of software and data so it is spread over a network of computers, as opposed to one database. This allows for greater control, with regular updates. In this case, with Santander, according to the press release, blockchain was used to set up a “shadow digital register” of proxy voting taking place using the conventional voting model.
“Having very fragmented capital, it is very important to ensure the participation by investors and shareholders, and this year using blockchain technology for the institutional vote has been a great help in terms of transparency and agility across the vote life cycle,” said Sergio Gámez, global head of shareholders and investor relations at Banco Santander, parent of Santander Bank, in a statement.
Institutional investors, said Santander, could see how much quicker votes could be counted and confirmed with the blockchain technology, as opposed to the traditional waiting two weeks for manual counting by different intermediaries.
“This could also help motivation to vote, which improves corporate democracy,” the press release said.
Susan Shalhoub is a PBN contributing writer.
