On July 30th, the financial institution CLS Group and the multinational technology company IBM announced the launch of a market for blockchain applications and services for banking operations.
The online store will be called LedgerConnect, and will be a private blockchain-based technology on the IBM Blockchain platform and Hyperledger Fabric technology. In turn, this platform will offer a variety of distributed ledger technology (DLT) options for financial institutions, FinTech companies, and software vendors.
Among the purposes of the applications, there is the management of customer and market data, the management of guarantees, the control of sanctions, and the monitoring of financial product negotiations, among others.
It should be noted that the CLS Group publication does not mention that these are solutions that include cryptocurrencies so they would only be blockchain applications aimed at facilitating traditional banking operations.
IBM and CLS Group to develop LedgerConnect based on blockchain technology for banking operations
The promoters of this initiative, both IBM, and CLS, will carry out a proof of concept of this platform with the participation of banking institutions such as Citigroup and Barclays. It should be noted that, following this proof of concept and the approval of relevant regulations, IBM and CLS plan to offer LedgerConnect to the industry.
LedgerConnect is part of CLS’s strategy to explore how we can provide secure and robust solutions that create efficiencies and reduce the risk for a wide range of companies operating in the financial markets. We expect LedgerConnect to deliver better efficiencies and economies of scale over distributed, single-purpose accounting networks.
Alan Marquard, the CLS Director of Strategy and Development
Marie Wieck, CEO of IBM Blockchain, said that “LedgerConnect has a unique position as a blockchain technology solution for the financial services industry,” which will help drive innovation in the industry.
Without a doubt, IBM has been one of the pioneers in the development of blockchain technology for different industries. One of its latest initiatives was the creation of a blockchain research center towards data transparency. On the other hand, banks around the world have conducted tests to determine the efficiency of the distributed ledger technology in their services.