A new partnership is on its way and this time it is between IBM and Australian banks – all in order to launch a pilot that will put retail lease bank guarantees on a private blockchain. As the latest cryptocurrency news show, the partnership is also joined by the shopping center operator Scentre Group.
Lygon – which is launched with participation from ANZ, Commonwealth and Westpac banks on July 3 – will collect and digitize data from a test group of Scentre Group lease holders across Australia.
IBM and Australian banks are on the project now – and all of the firms hope that the Lygon platform will shorten the time that it takes for banks to issue guarantees – reducing the time to a single day. As many best cryptocurrency news sites noted, the same validation could take up to a month if being issued on paper based on the current practices.
Additionally, the digitization reduces the risk of fraud and errors across the billions of dollars banks guarantee, the backers at Lygon contend. All of the Australian retailers need a bank guarantee in order to secure such a lease and operate their stores.
If there is a successful pilot on Lygon, IBM and Australian banks will build a project that will offer access to the platform to all bank users, lease applicants as well as beneficiaries. The five founding members may also expand the research in other industry uses.
IBM has not responded to requests for comment. However, the Lygon effort was featured on many altcoin news sites as the latest blockchain based system built specifically for bank guarantees.
In 2017, the Belarussian Central Bank approved usage of blockchains for this kind of service while in 2018, the multinational banking firm Standard Chartered partnered with the manufacturing giant Siemens for a trade finance bank guarantee pilot.
There has been a similar pilot between IBM and Australian banks – in fact IBM, Westpac, Scentre Group and ANZ – which was concluded with success in 2017. The consortium at the time concluded that in order to receive greater industry adoption, the project “needs to be scaled and discussed with a broader range of participants.”
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