CLS, IBM and nine banks to build blockchain marketplace

CLS, IBM and nine banks to build blockchain marketplace

Foreign exchange settlement house CLS is collaborating with nine banks and IBM to build a shared marketplace platform - or app-store - for multiple blockchain applications.

The partners are working with LedgerConnect on a proof-of-concept for the idea, which would enable banks and software vendors to deploy, share and consume services hosted on an independent network. Typical applications available would include KYC processes, sanctions screening, collateral management, derivatives post-trade processing and reconciliation and market data.

Nine financial institutions, including Barclays and Citi, are participating in the PoC and have selected services from a number of vendors including Baton Systems, Calypso, Copp Clark, IBM, MPhasis, OpenRisk, SynSwap and Persistent Systems to participate in the project.

Operating on a private permissioned network based on the IBM Blockchain Platform and Hyperledger Fabric, LedgerConnect will bid to provide a marketplace for vetted and approved blockchain-based applications. Banks will be able to pick and choose between applications, eliminating the need to develop their own unique interpretations in silos, creating multiple versions of equivalent applications and thereby increasing redundancy, interoperability costs and complexity.

Alan Marquard, chief strategy and development officer, CLS comments: "LedgerConnect is part of CLS's strategy to explore how we can provide safe and robust solutions that create efficiencies and reduce risk for a diverse range of firms operating in the financial markets. We expect LedgerConnect to deliver enhanced efficiencies and economies of scale over single-purpose distributed ledger networks."

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