CNBC reports that IBM has released a blockchain platform aimed at financial services. Banks are beginning to turn to technology to facilitate their loan origination and transaction settlement processes.
IBM and CLS, a foreign exchange market infrastructure company, have partnered to create LedgerConnect, CNBC reports. The DLT platform is designed for financial services companies and will apply blockchain technology to areas such as know-your-customer processes, sanctions monitoring, collateral management, post-trade derivatives processing and reconciliation, and market data, according to CNBC.
LedgerConnect is hosted on a single network and will provide a one-stop shop for financial institutions to build blockchain applications.
IBM is not the only company offering this technology to banks, R3 specifically offers blockchain products aimed at industry. Some banks also work with their own technology, which can be detrimental since the different blockchains do not work with each other. If one company works with a DLT created by one company and another uses a different blockchain, the two institutions may not be able to transact with each other. CNBC reports.
Blockchain is expected to speed up processes within the financial sector, making it more efficient and cheaper. CNBC reports. However, the industry has not fully adopted the technology and is instead beginning to experiment with DLT.
