Foreign exchange settlement provider CLS, IBM (IBM.N) and nine financial institutions, including Barclays Plc (BARC.L) and Citigroup Inc (C.N), are testing a platform to access blockchain-based applications, the companies said on Monday.
The platform, LedgerConnect, will offer applications and services provided by different vendors in areas such as customer compliance checks, sanctions screening and collateral management, the companies said.
LedgerConnect – which is based on a model similar to that of consumer app stores – aims to make it easier and cheaper for financial firms to use blockchain-based software.
Blockchain, which first emerged as the system underpinning cryptocurrency bitcoin, is a shared ledger of transactions that is maintained by a network of computers rather than a centralized authority. Banks and other financial institutions have been investing millions of dollars in developing the technology which they believe can help them simplify some of their processes and cut costs.
While many blockchain-based applications are being tested by banks, few have gone into production.
Source: Reuters
