IBM, Barclays and Citigroup to launch blockchain app store for banks

IMB has teamed up with the likes of Barclays and Citigroup to launch a blockchain platform for financial services, with the tech giant calling a proof-of-concept design called LedgerConnect.

So far, nine financial services companies are involved in the proof of concept and have selected services from a number of vendors including Baton Systems, Calypso, Copp Clark, IBM, MPhasis, OpenRisk, SynSwap and Persistent Systems.

The system is a distributed ledger technology platform created for financial services companies such as banks, buy and sell-side firms, FinTechs and software vendors. The platform will bring the companies together to use blockchain-based services, the same underpinning cryptocurrency bitcoin.

The services will include Know Your Customer processes, sanctions screening, collateral management, derivatives post-trade processing and reconciliation and market data. This could speed up processes and cut the costs for companies.

"By hosting these services on a single, enterprise-grade network, organizations can focus on business objectives rather than application development, enabling them to realize operational efficiencies and cost savings across asset classes," IBM says.

“This allows financial institutions to focus on transforming business processes rather than creating multiple new blockchain applications, networks and services in silos that could lead to increased interoperability costs and complexity," the tech giant added.

Although, a potential problem that comes with the innovation is that some banks are working on their own technology and the different blockchains may not work with each other.