Testing Phase for IBM’s LedgerConnect Begins

BTC Wires: IBM and CLS are now partnering up to test LedgerConnect, a platform that will let banks, software sellers, and other companies to make transactions using blockchain. It was developed by IBM and Hyperledger. Among the 9 names participating in the proof of concept (PoC) are financial giants Citi and Barclays.

The platform is anticipated to bring in more and more innovations in the blockchain ecosystem. LedgerConnect will provide fast and secure transaction solutions while also being pocket friendly, says Alan Marquard, chief strategy and development officer, CLS.

Banks will now be able to lower expenditures on technologies as they will now be able to share and ask for participation in all the services in a network.

The platform will be restricted to being applications specific to the Hyperledger Fabric. However, support for technologies and networks might be offered in the future. According to an IBM statement:

“Operating on a private permissioned network based on the IBM Blockchain Platform and Hyperledger Fabric technology, LedgerConnect will be designed for regulated and security-conscious enterprises and available across asset classes. Support for additional ledger technologies may be provided in the future, based on market demand and developments.”

Armonk maintains that all security and performance examinations of IBM are performed on crypto apps before being certified. While financial institutions will be at an advantage in a place where they could avail apps that have already been tested, software vendors too now have a platform where they can better sell their products. Synswap, which came up from a Barclays accelerator earlier in the year, is one of such vendors.

Some of the services and apps to be put on the platform will be specific to certain functions like post-trade processing of derivatives, market analysis data, screening sanctions, collateral management, and KYC procedures.

Several apps have already been placed in LedgerConnect, including the Openrisk apps for managing margins and collaterals, and also a Synswap software for portfolio reconciliation. Many new apps are also in the process of being introduced, like IBM’s new KYC app, and also a sanctions-screening application developed by mPhasis.

A number of other vendors are also taking part in the PoC, including Copp Clark, Calypso, Persistent Systems and Baton Systems. Once the procedure has been successfully finished and all the required regulation certificates acquired, IBM and CLS plan to expand the access of the platform in the crypto-industry.