IBM and Westpac test Blockchain for bank guarantees

A group of companies based in Australia announced the completion of a Blockchain test to digitize the bank guarantee process for the lease of commercial real estate.

A collaboration with IBM, Westpac, the operator of the Scentre Group shopping center and ANZ, the group informs that it was able to apply Distributed Accounting Technology (DLT) successfully to eliminate the need for paperwork for bank guarantee documents. Participants have released a bank document detailing how the solution worked and how they believe it could be used in other situations that rely on bank guarantees.

In addition to eliminating the need for physical document management, Westpac said the test also addressed other inefficiencies in the current bank guarantee process, including the challenges in tracking and reporting the status of a guarantee through multiple changes.

Overall, it's the latest sign that Australia is building its research and development on blockchain technology. Last month, the Australian government published two blockchain research studies, and in April, public records showed that Australia's central bank is involved with several initiatives focused on blockchain technology.

^{Daily news and insights from the cryptocurrency world}