To create a new private ecosystem based on blockchain three major institutions have joined hands recently. These are the famous software giants like IBM, Barclay and Citigroup which are the founders of LedgerConect.
To reach more bank customers, this financial blockchain “app store” will provide access to distributed ledger technology (DLT) solutions from fintech and software providers. Eventually making the process easier for the banks. The LedgerConnect will allow financial institutions to access DLT-based services in several areas. It will affect several services such as know-your-customer processes, collateral management, sanctions screening and derivatives post-trade processing.
LedgerConnect is the offspring of the bank owned currency trading utility CLS and the enterprise software giant IBM. There are nine companies that are joining the proof of concept (PoC) and the ones which have selected services from a number of vendors such as Baton Systems, Calypso, Copp Clark, IBM, MPhasis, OpenRisk, SynSwap and Persistent Systems.
IBM, Barclays and Citi Partnership
The vice president of financial markets at IBM, Keith Bear said,
“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.”
Dr Lee Braine of the investment bank CTO office at Barclays explained that there are several different deployment options to consider when architecting distributed ledgers for live environments. He added,
“Some banks may also look to explore the more decentralized deployment option of hosting their nodes themselves. By participating in the LedgerConnect proof-of-concept, Barclays is gaining experience of a distributed ledger private network aimed at connecting both market infrastructure-hosted nodes and bank-hosted nodes.”
It will partly run on permissioned blockchain based on IBM’s blockchain platform. Moreover, all the apps are Hyperledger-based in the store. The founders are also open to other blockchain solutions which will make use of the app store.