IBM, Westpac and More Trial Blockchain for Bank Guarantees

A distributed ledger trial united IBM and two Australia-based banks in an effort to improve the commercial property leasing process.

AccessTimeIconJul 10, 2017 at 2:00 p.m. UTC
Updated Sep 11, 2021 at 1:31 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

A group of Australia-based companies have announced the completion of a blockchain trial aimed at digitizing the bank guarantee process for commercial property leasing.

A collaboration with IBM, Westpac, shopping centre operator Scentre Group and ANZ, the group reports it was able to successfully apply distributed ledger technology (DLT) to eliminate the need for current paper-based bank guarantee documents. The participants have released a white paper detailing how the solution worked and how they believe it could be used in other situations that rely on bank guarantees.

Commenting on the successful trial, Mark Bloom, chief financial officer at Scentre Group, said:

"An update of the decades-old process for issuing, tracking and claiming on guarantees is long overdue. With approximately 11,500 retailers across Australia and New Zealand, who use guarantees to support rental obligations, manual tracking of guarantees has been an extremely cumbersome and labour intensive process."

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

Overall, it's the latest sign that Australia is building up 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 tech.

Westpac image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.