5 recent announcements of blockchain technology used in financial services

By Edil Corneille

The implementation of blockchain technology in finance is still being explored by institutions today with recent developments being announced regularly. This technology is also known as distributed ledger technology (DLT) and has a significant impact on the industry with the trend being expected to continue and rapidly develop in the future. The incorruptible digital ledger maintains a record of transactions occurring across a public or private peer-to-peer network. Blockchain technology is expanding gradually in areas of banking, insurance, and capital markets, among others, and will change the way in which financial institutions carry out their operations. Blockchain technology applications in the space of payments, trade finance, KYC, bond trading, lending, etc., continue to develop. Below are the 5 recent blockchain technology developments in Asia announced by organisations in the field of financial services.

BondEvalue and Northern Trust

Northern Trust and Singapore-based FinTech BondEvalue announced the completion of the first trade of a fractionalised blockchain-based bond. The trade of the blockchain-based bond, known as BondbloX, was executed on BondEvalue’s platform with Northern Trust as the exclusive asset servicing provider. BondEvalue’s platform combines the power of distributed ledger technology (DLT). Northern Trust has built the capability to communicate cash & securities settlement reporting directly to BondEvalue’s DLT platform via an application programming interface (API).

The two parties had established a strategic partnership in November 2019 to deliver integrated asset servicing and digital solutions for fractional ownership of fixed income bonds operating from the Monetary Authority of Singapore’s Sandbox Express.

Hashstacs and Bursa Malaysia 

Another Singapore-based FinTech provider – Hashstacs (STACS) has partnered with Bursa Malaysia on a Blockchain Proof-of-Concept (POC) project dubbed ‘Project Harbour’ for its Bonds marketplace. The project is centered around the usage of DLT as a register in facilitating the growth of Labuan’s bond marketplace. The project will take place in Malaysia’s offshore market, Labuan, in collaboration with the Labuan Financial Exchange (LFX), a wholly-owned subsidiary of Bursa Malaysia.

Tel-Aviv Stock Exchange 

The Tel-Aviv Stock Exchange (TASE) announced the launch of a Central Blockchain Securities Lending Platform. Starting on November 2, 2020, the platform will enable capital market players for direct lending among all the major financial instruments. DLT will be used as a basis of the new trading platform which will harness direct peer-to-peer transactions, Smart Contract, and enhanced security through immutability. The platform will function as a one-stop-shop for all securities lending activities, permitting access to larger securities volumes within shorter timeframes, even operating in shorter-term positions.

Dubai Economy and Emirates NBD

The two parties announced the go-live of the UAE KYC Blockchain Platform, which is an initiative that facilitates secure digital customer onboarding, instant bank account functionality, and sharing of verified KYC (Know-Your-Customer) data between licensing authorities and financial institutions via advanced distributed blockchain technology. This initiative is powered by norbloc, a global leader in blockchain KYC technology.

essDOCS and Infosys Finacle

essDOCS, a company said to be an enabler of paperless trade, announced its partnership with Infosys Finacle, part of EdgeVerve Systems, a wholly-owned subsidiary of Infosys. The collaboration encompasses the automation of trade finance processes through DLT. essDOCS’ CargoDocs DocEx solution will be integrated with Finacle’s blockchain-based trade finance solution Finacle Trade Connect, for select use-cases. CargoDocs DocEx is a digital solution for banks and corporates enabling the secure electronic signing, distribution/ transfer and management of original electronic documents – including title documents such as Bills of Lading and Warehouse Warrants – through the supply chain. Blockchain solution Finacle Trade Connect addresses and simplifies the trade finance process requirements for banks, digitizing trade finance business processes including validation of ownership, certification of documents and payments, while working on a distributed, trusted and shared network.