IBM launches blockchain pilot for bank guarantee process

IBM launches blockchain pilot for bank guarantee process

Technology giant IBM has launched a blockchain power platform pilot designed to streamline the bank guarantee process.

In a press release shared with Cointelegraph on July 3, IBM said the pilot was launched in partnership with four Australian financial services companies.

The pilot, called Lygon, is supported by IBM, Australia and New Zealand Banking Group Ltd., the Commonwealth Bank, real estate operator Scentre Group and Australia's first bank, Westpac. Starting today, the retail group leasing customers of the pilot group will be commissioned for eight weeks.

Essentially, Lygon is a blockchain-based platform that digitizes the issuance and management of bank guarantees in the retail property leasing industry. According to the release, the digital process will reduce the risk of fraud, reduce the possibility of errors, and increase transparency and security.

Once the pilot is completed, Lygon plans to expand the range of digital banking guarantees it supports and begin to provide it to other industries. Didier Van Not, General Manager of Westpac and Institutional Banking, said:

“We have created a blockchain-based platform for the digital banking guarantee ecosystem. This pilot will use a distributed ledger to test real-time transactions to prove that the technology is commercially viable. This is a good digital transformation. Examples can improve the customer experience."

To date, IBM has introduced a number of enterprise blockchain products. Last month, CIP, the Brazilian bank and financial infrastructure promoter, officially launched its blockchain ID platform by partnering with IBM using Hyperledger Fabric. Its purpose is to verify and verify digital signatures using mobile devices.

In March, five Japanese banks collaborated to launch a financial services infrastructure based on IBM's distributed ledger technology. (New Finance)