LedgerConnect is a blockchain-based application that is being tested by leading banks including IBM, Barclays, Citigroup Inc, and CLS. Reuters reported that it will provide services such as “customer compliance checks, sanctions screening and collateral management.”
Instead of creating an app for each individual bank, these financial institutions decided that they could test one which could be used globally. This could potentially decrease cost and increase the rate of adoption of blockchain solutions.
Lee Braine, from the Investment Bank Chief Technology Officer Office at Barclays, focuses on blockchain technology. He has a PhD in Computer Science and has also written papers on smart contracts along with other authors. Braine told Reuters:
Barclays is participating in the LedgerConnect proof-of-concept so we can gain an understanding and experience of a new network for blockchain applications – and also test some candidate use cases on that network.
Alan Marquard, CLS’ chief strategy and development officer, also said that LedgerConnect would follow security and technical standards, thus making sure that each bank follows proper rules and regulations.
Keith Bear, VP for financial markets at IBM, told Coindesk, “Having a secure network and proven infrastructure allows an app store kind of model, where banks can identify applications from certified fintech and software providers and deploy these apps over a seamless blockchain network.”
Ram Komarraju, CLS’ head of innovation and solution delivery, said that they have been working on LedgerConnect for quite some time now. Although only four banks have been publicly linked to this blockchain platform, the rest of the banks wish to remain anonymous until they have seen the Proof of Concept (PoC). Calling it a ‘PoC fatigue’, Bear said that this problem stems from the fact that many blockchain solutions are unsuccessful. Hence, by launching LedgerConnect, they are not only utilizing a new technology but are also trying to get rid of PoC fatigue.
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