Vanguard is now going after currencies by cutting out big investment banks from the trading process, writes Alastair Marsh for Bloomberg.

Vanguard has been testing a new way to trade currencies for the past two months. The platform the investing pioneer is using is based on the same technology that powers Bitcoin and has already handled several trades.

“Vanguard is currently piloting a project focused on improving the efficiency and reducing the risk of FX hedging,” said company spokeswoman Carolyn Wegemann, noting that it is part of the firm’s commitment to “lower the cost of investing for all investors.”

If successful, the venture could once more revolutionize the industry. This would shift power in the $6-trillion-a-day currency market that has been ruled by big banks for decades.

The venture could also be assisted by getting enough investment firms on board through the cost savings offered from peer-to-peer trading. Their profits are already being squeezed in the race to lower fees and mounting regulatory burdens.

“Direct trading really is the Holy Grail for the buy-side,” said Campbell Adams, a former senior currency trader at Deutsche Bank.

Read more about Vanguard in Bloomberg here.

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