4 banks successfully test new blockchain platform

LONDON: A group of four banks have successfully issued a promissory note - a type of legally binding loan agreement - through a new blockchain platform. The financial institutions used finledger to complete the transaction. According to Helaba, one of the banks involved, the platform reduces the steps involved with issuing such a note by more than 50%.

As well as eliminating the need for lenders to hold documents or for borrowers to send valuables, the banks claimed the technology helps cut the risks and costs associated with the process. DekaBank, dwpbank, DZ Bank and Helaba were involved in the pilot transaction, and there are now plans to roll out finledger to the entire industry. Peter Tenbohlen, the head of operations at DZ Bank, added: "As digitization has progressed, our customers' demand for digital services has increased significantly. Thanks to the bundled expertise of four banks, we are now presenting a new platform through which trading transactions can be processed fully automatically."

Helaba, one of the most prominent banks in the German city of Frankfurt, recently joined the distributed ledger technologybased trade finance network Marco Polo. Earlier this month, three global banks joined Finastra's R3 Corda blockchain-based syndicated loans platform - enabling financial institutions to instantly share records such as credit agreements and accrual balances. Per the report, an unspecified source familiar with the matter told the outlet about the company's plans to raise further funding. Moreover, Bloomberg reports that the round would increase the firm's value to between $7 billion and $8 billion, but that the details could change.

Other people familiar with the matter also told Bloomberg that the new funds come from existing investors, all of whom asked not to be identified and to keep the details private.