CLS and IBM furnish fintech with hosted blockchain service
Market infrastructure group CLS and IBM have teamed up for a proof of concept (PoC) using a distributed ledger technology (DLT) platform to offer services hosted on a shared network.
Called LedgerConnect, it is designed to enable banks, buy and sell side firms, fintech and software vendors to deploy, share and consume services.
Services include know your customer (KYC) processes, sanctions screening, collateral management, derivatives post-trade processing and reconciliation and market data.
IBM says: “By hosting these services on a single, enterprise-grade network, organisations can focus on business objectives rather than application development, enabling them to realise operational efficiencies and cost savings across asset classes.”
Marie Wieck, general manager, IBM Blockchain, adds that LedgerConnect builds on the “success of CLSNet [an FX product for post-trade processing] and leveraging the strong relationship CLS has with the world’s leading financial institutions”.
Nine financial institutions, including Barclays and Citi, are participating in the PoC and have selected services from a number of vendors including Baton Systems, Calypso, Copp Clark, IBM, MPhasis, OpenRisk, SynSwap and Persistent Systems to participate in the PoC.
LedgerConnect operates on a private permissioned network based on the IBM Blockchain Platform and Hyperledger Fabric technology.
IBM says support for additional ledger technologies may be provided in the future, based on market demand and developments.
The duo says that on completion of the PoC, generation of market demand, and receipt of all necessary regulatory approvals, CLS and IBM plan to make the platform widely available to the industry. No timelines or specific details on any of that.
Block craft
Like a dungeon explorer seeking out more treasure in a fantasy novel, IBM is delving deeper and deeper into the world of blockchain.
Earlier this month, Columbia University and IBM set up a centre devoted to research in blockchain technology and data transparency.
Back in May, IBM revealed a set of investments and initiatives in France that will create 1,800 jobs during the next two years, in areas like artificial intelligence (AI), blockchain, cloud computing and the internet of things (IoT).
