Leading Australian banks ANZ, Commonwealth Bank of Australia, and Westpac Banking Corporation, alongside local-based shopping company Scentre Group and tech giant IBM have expanded their blockchain-based consortium Lygon to offer digitized bank guarantees.
Debuted in July 2019, Lygon tested out with more than 20 Australian businesses. Since then, the platform has onboarded new applicants to the platform in less than 15 minutes and supported a number of other common bank guarantee processes.
Now, Lygon will focus on digitizing bank guarantees to reduce the costs and operational procedures involved in traditional paper-based processes. To be able to do this, the platform will utilize the IBM Hyperledger technology in making electronic bank guarantee issuance a one-day process.
Lygon Chairman Nigel Dobson proudly said that the commercialization of the said platform represents a milestone for blockchain technology in Australia and the global banking economy. He explained that this is a vital step they have made during this digital-based era.
In digitizing a bank guarantee, we’ve essentially transformed a three-way contract. We’ve digitized the paperwork, the process, and the legality behind it.
This fintech-powered platform will be open to the general public, along with its new features, in early 2021. Following this commercial release, the company’s next stage of development would be to expand the cross-border range of its digitized bank guarantee offering and explore into New Zealand and other international markets.
Introducing Lygon, a new digital platform that uses #blockchain technology to transform how businesses obtain and manage bank guarantees. Learn more: https://t.co/x0LFg1bDe3 pic.twitter.com/W9voubQK4J
— IBM Australia (@IBMAustralia) September 1, 2020
Lygon’s revolutionary process is said to reduce the risk of fraud, decrease the potential for errors, and significantly shorten the time needed to issue a bank guarantee typically required when applying for a retail property lease.