IBM, CLS and Banks Launch Blockchain App Store
Enterprise software major IBM, Forex settlement provider CLS and nine other banks including Barclays and Citigroup announced on Monday, July 30 that they were launching a Blockchain based app store.
LedgerConnect Offerings
The idea behind the creation of this app store is to make DLT (distributed ledger technology) more easily accessible for banks. It is also aimed at being a bridge so that fintech firms, software providers and other vendors can more easily reach banks.
This app store has been dubbed LedgerConnect and aims at providing apps and services from various vendors focusing on areas such as sanctions screening, customer compliance checks and collateral management. In fact, the services of multiple vendors such as Baton Systems, IBM, Copp Clark, Calypso, Open Risk, MPhasis, Persistent Systems and SynSwap have already been selected for the proof-of-concept (PoC).
According to IBM’s financial markets vice president, Keith Bear, having an app store where banks can choose apps from certified vendors is possible when there is secure network as well as proven infrastructure. This way, such apps can be deployed seamlessly using a Blockchain network without banks having to worry about security issues.
Exploring Options with LedgerConnect
LedgerConnect runs partially on IBM’s blockchain, which in turn runs on the Hyperledger Fabric platform. All the apps in the new store are currently Hyperledger based. However, the team of founders are more than open to the idea of other enterprise blockchain solutions being offered in this store.
CLS head of innovation and solution delivery, Ram Komarraju stated that the team was not closed to the idea of hosting alternate ledger implementations, whether it is Quorum or Corda, as long they meet their stringent security guidelines.
For Barclays, one of the most active banks in the DLT space, LedgerConnect is a way to test out new approaches to the technology. They may even be exploring the option of hosting nodes themselves. According to the Dr. Lee Baine from Barclays’ investment bank CTO office, by taking part in the proof-of-concept (PoC), the bank is learning how a DLT private network targeted at linking market infra-hosted nodes and bank-hosted nodes works.
Work Almost Done
According to Komarraju, the PoC is at a very advanced stage. They have enterprises that have selected use cases which have already been implemented. The IBM executive stated that the team was in the late stages of proving this technology.
Komarraju stated that at this point in time they could not reveal the names of all the participating banks as they had not yet gotten approvals from some of them. However, educated guesses would be that banking majors JP Morgan and Goldman Sachs could be candidates, as well as other banks that are on the we.trade platform.