Standard Chartered develops a blockchain-based solution for issuing bank guarantees

Verified
3 months ago
0

The international banking firm Standard Chartered is teaming up with Siemens to develop an experimental system that will allow for the recording of bank guarantees for the financing of trades on blockchain.

According to the IBS Intelligence report, the development of this system is aimed at digitizing the process of issuing bank guarantees using automated smart contracts.

The solution based on the open source protocol Corda from R3 and TredeIX software, “the industry solution transforms the way of implementing bank guarantees, the processes of their issuance and processing,” asserts the representatives of Standard Chartered.

If the pilot project proves successful, it will allow such companies as Siemens to significantly improve the efficiency of interaction with large customers. Michael Buecker, chief financial officer at Siemens, predicted that integrating this trade finance solution into the company’s day-to-day operations would also “streamline processes and make trade finance operations smoother, faster and more efficient.”

Recently, Siemens was interested in financing the start-up Ledger – the manufacturer of popular hardware wallets. According to forecasts, the capitalization of Ledger after attracting investments from such giants as Siemens may amount to more than $1 billion.