22 July 2017
Download the paper now.

Postal Savings Bank of China takes asset custody to the blockchain

11 January 2017  |  7070 views  |  0 Shanghai moder buildings

Postal Savings Bank of China (PSBC) has formally launched a blockchain-based asset custody system, executing more than 100 live transactions on the system during a two-month trial run.

PSBC worked with IBM and used the Hyperledger Fabric to create the first deployment in China. The launch comes off the back of a two-month pilot during which the bank completed over one hundred asset custody transactions involving buying and selling bonds.

Lyu Jiajin, president, PSBC, says the results demonstrated the capability of the technology to shake up a business in which multiple participants share and exchange data across a hotchpotch of disparate systems.

“Blockchain technology has the potential to eliminate the trust frictions in financial business activities at a very low cost and creates trust and enables the efficient exchange of information for all the parties involved in a transaction," he says. "This technology has the potential to fundamentally transform the financial industry."

As one of PSBC’s core businesses, asset custody now represents an approximately four trillion RMB business. Using a combination of smart contracts and consensus mechanisms, the blockchain process enabled the real-time sharing of information by multiple parties, eliminated repeated credit verifications, and improved audit capabilities and risk management.

Says Jiajin: "Today, with a booming fintech and business innovation in the financial industry, we expect to join hands with more financial institutions to build the ecosystem for financial industry based on blockchain technology.”

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

DTCC to build post-trade distributed ledger framework for derivatives

DTCC to build post-trade distributed ledger framework for derivatives

09 January 2017  |  7658 views  |  0 comments | 20 tweets | 17 linkedin
China launches $1.5bn fintech fund

China launches $1.5bn fintech fund

03 January 2017  |  31437 views  |  0 comments | 87 tweets | 55 linkedin
Euroclear pencils in 2017 for bullion on blockchain roll out

Euroclear pencils in 2017 for bullion on blockchain roll out

19 December 2016  |  16877 views  |  0 comments | 18 tweets | 11 linkedin
China tops world fintech rankings

China tops world fintech rankings

05 December 2016  |  13472 views  |  0 comments | 42 tweets | 33 linkedin
Korea Exchange uses blockchain tech for new startup marketplace

Korea Exchange uses blockchain tech for new startup marketplace

17 November 2016  |  5819 views  |  0 comments | 8 tweets | 7 linkedin
Singapore and international banks to construct interbank blockchain network

Singapore and international banks to construct interbank blockchain network

16 November 2016  |  8893 views  |  0 comments | 13 tweets | 21 linkedin
Capital markets expect blockchain to go mainstream within six years

Capital markets expect blockchain to go mainstream within six years

14 November 2016  |  14659 views  |  0 comments | 36 tweets | 43 linkedin
Industry-wide blockchain breakthroughs at least six years away

Industry-wide blockchain breakthroughs at least six years away

12 October 2016  |  17479 views  |  1 comments | 38 tweets | 26 linkedin
Blockchain-based smart contracts to save FS customers billions - Capgemini

Blockchain-based smart contracts to save FS customers billions - Capgemini

11 October 2016  |  12644 views  |  0 comments | 19 tweets | 15 linkedin
Luxembourg fund industry coalesces around blockchain

Luxembourg fund industry coalesces around blockchain

07 October 2016  |  12604 views  |  0 comments | 20 tweets | 21 linkedin
Banks ready for real-world blockchain

Banks ready for real-world blockchain

29 September 2016  |  12318 views  |  0 comments | 28 tweets | 33 linkedin
Time has come to extract value from blockchain investment – new Finextra paper

Time has come to extract value from blockchain investment – new Finextra paper

20 September 2016  |  9440 views  |  0 comments | 24 tweets | 16 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.finastra.comvisit www.niceactimize.comvisit www.worldpaymentsreport.com

Top topics

Most viewed Most shared
German fintech factory FinLeap raises EUR39 millionGerman fintech factory FinLeap raises EUR3...
13505 views comments | 19 tweets | 15 linkedin
Mastercard to buy AI outfit BrighterionMastercard to buy AI outfit Brighterion
9730 views comments | 14 tweets | 20 linkedin
Barclays rides payments-as-a-service wave with investment in Form3Barclays rides payments-as-a-service wave...
8719 views comments | 16 tweets | 12 linkedin
hands typing furiouslyThe Digital Trade Chain: the blockchain tr...
8299 views 0 | 8 tweets | 16 linkedin
Mastercard and Scotiabank join Enterprise Ethereum AllianceMastercard and Scotiabank join Enterprise...
7219 views comments | 25 tweets | 15 linkedin