Australian Banks Team Up with IBM to Launch Pilot Blockchain for Retail Lease Bank Guarantees
IBM, Commonwealth Bank, Westpac, ANZ and retail shopping centre operator Scentre Group, have jointly launched a pilot for Lygon, a new digital platform using blockchain technology to put retail lease bank guarantees on a private blockchain.
Lygon will collect and digitize data from a test group of Scentre Group leaseholders across Australia. The companies involved anticipate the Lygon platform will shorten the time it takes for banks and other financial institutions to issue guarantees, offering same-day settlement and begin operating their business immediately, vs. waiting weeks to secure such a lease. Lygon is planning to offer access to its blockchain platform, contingent on a successful pilot, to all bank issuers, lease applicants, and beneficiaries.
The Lygon effort represents the latest blockchain platform designed specifically for bank guarantees. Lygon plans to expand the range of digitized bank guarantees to other industries including customers in the retail property sector.