Blockchain In Banking – news feed
Bank of America (BoA) wants to patent a system using blockchain technology to improve cash handling, a new application published Dec. 25 confirms.
Originally submitted in June 2017, the patent references “banking systems controlled by data bearing records.”
“Aspects of the disclosure relate to deploying, configuring, and utilizing cash handling devices to provide dynamic and adaptable operating functions,” its abstract reads.
KfW Bankengruppe, Germany’s publicly owned development bank is testing an application of blockchain for public finance management in Burkina Faso. It’s all part of a program to improve economic development cooperation when giving money to other countries for development projects.
17-Dec-18 Porsche Uses Blockchain Platform to Close $170 Million Loan with BBVA
One of the planet’s largest vehicle distributors has just finalised a $170 million loan using blockchain technology. Porsche completed the deal with the Spanish bank Banco Bilboa Vizcaya Argentaria’s (BBVA) blockchain platform.
The news makes Porsche the first non-Spanish company to use the distributed ledger platform to borrow funds from BBVA. It is thought that the use of blockchain technology in the negotiation and closing of loans will increase efficiency and transparency in the financial sector.
The Advisory Council of the United Arab Emirates Banks Federation (UBF) discussed applying blockchain in its member banks, according to the Dubai-based English language newspaper Gulf News on Dec. 17.
The Advisory Council of UBF, a non-profit organization representing 50 member banks in the country, considered using blockchain to improve Know Your Customer (KYC) processes at entrant banks. UBF’s chairman, Abdul Aziz Al Ghurair, claimed that the discussed initiative represents an effort to create and maintain a “thriving banking ecosystem.”
South Korea’s second-largest commercial bank, Shinhan Bank, has embarked on a project to implement blockchain in internal processes to decrease human error. The initiative was reported by English-language daily news outlet The Korea Times on Dec. 10. Shinhan, which has sought integration with both the blockchain and cryptocurrency spheres over the past eighteen months, also completed a staff training program to increase knowledge of blockchain for various applications.
The Department of Financial Services of New York (NYDFS) has authorized a blockchain-based digital platform offered by a local bank, an official NYDFS press release states Dec. 4. NYDFS superintendent Maria T. Vullo announced today that the department authorized New York-based Signature Bank to offer its digital payment platform Signet in the state. The approved system reportedly uses blockchain technology to allow the bank clients to “transfer ‘Signets’ to make payments with no transaction fees, at any time of the day, year-round.”
Brazil’s largest private bank has partnered with United Kingdom bank Standard Chartered to create a blockchain-based platform for small loans, according to a press release published by Itau Tuesday, Dec. 4.
Itau Unibanco, also a major Latin American banking group, and Standard Chartered both offer international banking services. The two entities have successfully conducted a proof-of-concept (PoC) for the mentioned platform, based on Corda Connect developed by New York-based blockchain startup R3.
The Bank of America (BoA) has won a patent for a system for enterprises to store customers’ crypto deposits, published by the U.S. Patent and Trademark Office (USPTO) yesterday, Nov. 13. The patent, first filed in mid-June 2014, outlines the background to the invention by stating that “as technology advances, financial transactions involving cryptocurrency have become more common,” and noting: “For some enterprises, it may be desirable to aggregate cryptocurrency deposited by customers in an enterprise account.”
The Russian subsidiary of Raiffeisen Bank International has partnered with local state-owned oil giant Gazprom Neft to issue a bank guarantee on blockchain, Russian business newspaper Kommersant reported Nov. 12. According to Kommersant, the bank guarantee was issued to conduct a trade finance transaction involving four parties, Raiffeisen, Gazprom Neft, Belarusian firm Mozyr Oil Refinery, Priorbank of Belarus. Raiffeisen acted as an advising bank for the Russian oil company, while Priorbank of Belarus, which is part of Raiffeisen bank group, issued a bank guarantee for the deal via blockchain.
The Commonwealth Bank of Australia (CBA) and government-run digital innovation center Data61 have released the results of their trial for a blockchain-powered “smart money” system for Australia’s National Disability Insurance Scheme (NDIS). The development was reported by local financial and business news platform Business Insider Australia today, Nov. 13. Data61 is a digital innovation hub that forms part of the Commonwealth Scientific and Industrial Research Organisation (CSIRO) — an Australian government corporate entity that undertakes scientific research to advance diverse local industries. The $93.5 billion market cap CBA is the country’s largest bank, as well as the 71st largest public company in the world.
A subsidiary of Canadian financial institution VersaBank confirmed it had finished beta testing of a “digital vault” for storing cryptocurrency in a press release Nov. 8. VersaVault, which announced its so-called “digital safety deposit box” in February, is aiming to attract crypto exchanges and funds as clients for the new tool. The product provides cryptocurrency storage on servers dotted throughout the world, the deposit box element lying in the fact the bank itself can neither brute force the digital ‘boxes’ nor know their contents.
7-Nov-18 Post-Trade Financial Services Giant, 15 Major Banks Test DLT Project for Credit Derivatives
Global post-trade market infrastructure giant The Depository Trust & Clearing Corporation (DTCC) is entering the testing phase of its replatformed Trade Information Warehouse (TIW) based on distributed ledger technology (DLT), according to a press release published Nov. 6. DTCC’s warehouse provides event processing services for around 98 percent of all credit derivatives transactions in the global marketplace. The infrastructure provider is now reportedly working with fifteen of the world’s leading banks to test its new DLT-based restructuring of the warehouse.
24-Oct-18 CGI and National Bank of Canada pilot a blockchain guarantee and standby negotiation platform
MONTRÉAL, Oct. 21 2018 /CNW Telbec/ – CGI (NYSE: GIB) (TSX: GIB.A) announced the successful collaboration with National Bank of Canada and Skuchain on a pilot program that will improve and streamline the process for negotiating standby letters of credit and guarantees, the complex conditional agreements used by banks for securing financial transactions. These agreements, used across many industries to secure contracts, are currently conducted via email, making them prone to errors and delays in a process that lacks transparency for beneficiaries regarding terms and approval status.
Sberbank and the National Settlement Depository (NSD) have summed up the results of a test deal to attract financing through an initial coin offering (ICO) using the Bank of Russia’s sandbox.
National Westminster Bank (NatWest), a UK bank part of the the Royal Bank of Scotland, has announced its integration with a new blockchain-based platform to streamline communication between agent banks and lenders in the syndicated loans market.
NatWest will be leveraging Finastra’s Fusion LenderCoom, a platform underpinned by Corda, R3’s distributed ledger technology. The new system is set to go live in November 2018.
9-Oct-18 Unconfirmed: IBM, Azeri Central Bank Cooperate on Blockchain Development, Local Media Report
MIBM and the Central Bank of Azerbaijan (CBA) will reportedly collaborate on implementing blockchain technology in the country’s economy, Central Asian-focused Trend News Agency reports October 9.
Trend News Agency is an established news service provider spanning the Caucasus, Caspian region and Central Asia, with dedicated news platforms in Azerbaijani, Russian, Turkish and Persian, alongside an English-language platform
The agency states that the director of the Information Technology Department at the CBA, Farid Osmanov, revealed news of the five-year program for the digital transformation of the economy at the Azerbaijan-Germany Business Forum on Energy and ICT in Baku earlier today.
On September 25th, Facebook reported a security issue that affected almost 50 million users. Hopefully, this security breach will drive Facebook management to accelerate its efforts to improve data privacy by incorporating blockchain technology.
A group of European banks led by the Associazione Bancaria Italiana (ABI) have completed the first tests in a blockchain trial for interbank reconciliations.
In one of a number of inter- and intra-bank blockchain pilots and projects happening around the world, Italy is ready to take the next step in their interbank blockchain reconciliation project.
Since first revealing the project a few months ago, 14 European banks have loaded two months of “real data” onto a Corda-based blockchain network.
Sierra Leone’s president Julius Mada Bio announced a new initiative to create a national, blockchain-based credit bureau. The announcement took place at the 73rd Session of the U.N. General Assembly (UNGA) Thursday, September 27.
The president presented the project as being poised to “radically transform” the country’s financial inclusion landscape. The initiative is reportedly the result of a partnership between technology non-profit Kiva, the U.N. Capital Development Fund (UNCDF), and the U.N. Development Programme (UNDP).
The Chinese state-owned Bank of Communications (BoCom) has successfully issued $1.3 billion of residential mortgage-backed securities (RMBS) using blockchain technology, national securities outlet China Securities Times writes Wednesday, September 27.
BoCom — the fifth largest bank in China according to S&P Global recent stats — used an independently developed platform called Juicai Chain to issue 9.3 billion yuan worth of RMBS, which is approximately $1.3 billion.
Lenders including Santander and Societe Generale are testing the Interbank Information Network (IIN). JPMorgan built the information sharing programme on its own proprietary blockchain platform, Quorom, and has been testing it with a handful of lenders since October 2017.
Mitsubishi UFJ Financial Group, one of the world’s largest financial groups, has been experimenting with using its own cryptocurrency, the Mufg coin, for payments at a convenience store for employees. This week, a local publication reported on the progress of the experiment.
Mitsubishi UFJ Financial Group (Mufg) has been experimenting with its digital currency, the Mufg coin. A convenience store for employees only, located at the group’s headquarters in Tokyo, has been allowing Mufg employees to pay with these coins. The Sankei Shimbun visited the store and reported this week that the experiment “is quietly advancing.”
Hong Kong’s de facto central bank will launch its own blockchain trade finance solution with 21 banks in August, Financial Times (FT) reported Sunday, July 15.
The joint venture between the Hong Kong Monetary Authority and Chinese company Ping An Group’s fintech subsidiary OneConnect aims to substantially reduce paperwork, costs security risks for participants, FT reports.
Multi-billion-dollar Japanese tech conglomerate GMO has launched a new internet banking business that will use blockchain technology for faster and cheaper payments and financial services.
In an announcement [PDF] on Tuesday, the GMO Internet Group confirmed the launch of the GMO Aozora Net Bank in partnership with Aozora Bank Group, a joint-initiative that has been in preparation since July 2016 that will leverage the use of blockchain, artificial intelligence (AI) and Internet of Things (IoT) to provide new financial services through financial technologies.
The advent of a cashless society amid a proliferation of smartphones and rapid advancements of financial technologies in society has led to new financial services like ‘convenient [and instant] settlements’ coming to the fore, a press release from GMO Aozora Net Bank added, heralding itself as an “everything for customers, aiming [to become] the #1 technology bank” in a roughly translated motto.
Bank of America (BoA) has filed a patent for a blockchain-based system allowing the external validation of data, according to a United States Patent and Trademark Office (USPTO) patent filing released July 17. BoA’s patent filing proposes using blockchain for tracking resource information and confirming resource transfers, noting that
“A need currently exists for providing a more accurate indication of a user’s financial standing by allowing external validation of data in a process data network.”
European blockchain trading platform We.Trade confirmed it had completed its first live operations today, July 3, involving twenty companies and five major banks.
The blockchain platform, which claims to provide a “more efficient and cost effective way” for banks and businesses to trade worldwide, uses IBM’s Blockchain Platform, powered by Hyperledger Fabric.
Part of various blockchain solutions currently under appraisal by the banking sector, the platform counts Deutsche Bank, HSBC, KBC, Natixis, Nordea, Rabobank, Santander, Société Générale and UniCredit as its founding members.
The Chinese bank is looking to blockchain technology to increase efficiency and improve customer service for financial asset exchange.
A patent application from the Industrial and Commercial Bank of China (ICBC) outlining a blockchain platform intended to improve financial asset exchange has been published. The institution is one of the world’s largest in terms of assets. The application was submitted in January and published on July 6.
The patent describes a system whereby once a participant has requested a transaction, an EDCC (or smart contract) will cause it to be validated by every node in the network, based on information such as “the ID of the buyer and seller, the commodity ID, the user balance, the transaction amount, the number of transactions, and one or several of the transaction times.” Transaction is considered complete upon validation of preset number of nodes.