CLS and IBM are working together to develop a blockchain based app store meant for financial institutions. The tech firm has partnered with CLS, which is a foreign exchange settlement firm, to develop a system based on the distributed ledger. The platform will enable various financial companies to access shared apps, as well as services.
The platform, which is currently undergoing the testing phase is called LedgerConnect. This system will rely on the distributed ledger technology like blockchain. Financial institutions will use the platform through its shared distributed ledger network for purchase and selling of side firms. LedgerConnect will also allow Fintechs and vendors of software to post, use and share services that are hosted on the shared platform’s system.
Aid in accessing services
Large businesses, which have similar needs will use the platform like an app store. LedgerConnect will help financial firms access services like, collateral management, know your customer (KYC) procedures, market data, sanctions screening, and post-trade process derivatives and reconciliation.
Having such services on one enterprise-grade network will ensure companies do not lose focus on developing applications, thereby concentrating on their main business objectives. This will ensure businesses operate efficiently and cut costs across asset classes.
Chief Strategy and Development Officer at CLS, Alan Marquad stated that “LedgerConnect is part of CLS’s strategy to explore how we can provide safe and robust solutions that create efficiencies and reduce the risk for a diverse range of firms operating in the financial markets.” Marquard was optimistic that the system would provide increased efficiencies and better economies of scale compared to distributed ledger networks meant for a single purpose.
Ongoing Proof of Concept
Currently, nine financial firms are already participating in the testing phase. However, it is only Barclays and Citi that allowed their names to be used in the report. Additionally, some selected services from various vendors are also participating in the testing phase. Vendors comprise of Baton Systems, Copp Clark, Calypso, IBM, Mphasis, Open Risk, Persistent Systems, as well as SynSwap.
The partnership between a technology firm and a financial related company potentially encourages participation. CLS is trusted among the big financial services firms while IBM provides expertise in technology.
Most financial leaders are realizing the potential of blockchain in regards to the financial sector. Even though the blockchain concept has attracted interest in the sector, only a few have gone past the Proof of Concept into production.