IBM has collaborated with foreign exchange services provider CLS on a new proof on concept (PoC) blockchain platform called LedgerConnect.
LedgerConnect is based on distributed ledger technology (DLT), and is aimed to help financial services industry to deploy, share, and utilize services hosted on a single, enterprise-grade shared distributed ledger network.
The new platform applies blockchain technology to a broad range of financial services like know-your-customer-processes, sanctions screening, collateral management, derivatives post-grade processing and reconciliation and market data.
“Together IBM and CLS have been early pioneers in advancing blockchain solutions for the financial services space,” said Marie Wieck, general manager, IBM Blockchain.
“Building on the success of CLSNet and leveraging the strong relationship CLS has with the world’s leading financial institutions, LedgerConnect is uniquely positioned as a blockchain marketplace for the financial services industry, which will accelerate innovation across the ecosystem with value added services for blockchain networks.”
Generally, the financial organizations need to implement individual blockchain platforms for multiple systems performing the same business functions. It can sometimes result in increased interoperability costs and complexity.
What LedgerConnect will do is provide a single shared and highly secured network, that allows organizations to deploy and consume multiple services. It will significantly reduce the costs and inefficiencies, as well as accelerate the business processes.
IBM mentioned that LedgerConnect will enable organizations to focus on business objectives rather than application development, so that they can realize operational efficiencies and cost savings across asset classes.
“LedgerConnect is part of CLS’s strategy to explore how we can provide safe and robust solutions that create efficiencies and reduce risk for a diverse range of firms operating in the financial markets,” said Alan Marquard, Chief Strategy and Development Officer, CLS.
“We expect LedgerConnect to deliver enhanced efficiencies and economies of scale over single-purpose distributed ledger networks.”
Nine financial organizations including Barclays and Citi, are participating in the initiative.
IBM and CLS will make the platform widely available following successful completion of PoC, generation of market demand, and necessary regulatory apporvals.