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ANZ, Commonwealth Bank and Westpac jointly launch Blockchain based Tech

                  Michael Thorpe

ANZ, Commonwealth Bank, IBM, Scentre Group and Westpac have jointly launched a live pilot for Lygon; Lygon is a digital platform using blockchain technology to transform the way businesses obtain, manage and leverage bank guarantees that are often required as part of a retail property lease. The launch marks a significant milestone in the global development of blockchain solutions.

This platform is believed to digitize bank guarantees, this solution reduces the risk of fraud for all parties involved, decreases the potential for errors and significantly increases the speed of execution. This new, digital process increases transparency and security through the use of blockchain technology while maintaining the privacy required in such a business process.

Didier Van Not, General Manager Corporate and Institutional Banking, Westpac commented, “While the pilot is focussed on retail property leasing, this technology has the potential to benefit many sectors and reduce the risk of fraud across billions of dollars guaranteed by the banks. The pilot will test live transactions using a distributed ledger to prove the technology is commercially viable. It is a great example of digital transformation that refines the customer experience.”

It is believed that Lygon plans to expand the range of digitised bank guarantees that it supports across other industries as well and it also plans to offer its services to other customers in the retail property sector. This platform will be jointly owned by the founding members and Lygon 1B Pty Ltd.

Michael Thorpe, Managing Director, Future Cities, Institutional Banking and Markets, Commonwealth Bank: “Commonwealth Bank has a strong track record of collaborative innovation using blockchain technology. This pilot is a co-operative industry approach to explore the use of blockchain technology to revolutionise bank guarantees, making the process simpler, easier and more transparent for our business customers – we are simplifying document exchange, using real-time monitoring and speeding up the issuing process. While the pilot is focussed on retail property leasing, the digitisation of bank guarantees can benefit many other industries and geographies where bank guarantees, or standard letters of credit, are used”

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