IBM and Financial services CLS are partnering together to form a distributed ledger technology, LedgerConnect, which is a blockchain based app store and a very new platform for IBM and financial services partners. On LedgerConnect financial institutions will be able to access services in areas such as know your customer processes, sanctions screening, collateral management, derivatives post-trade processing and reconciliation and market data.
Together IBM and CLS have been early pioneers in advancing blockchain solutions for the financial services space, Building on the success of CLSNet and leveraging the strong relationship CLS has with the world’s leading financial institutions, LedgerConnect is uniquely positioned as a blockchain marketplace for the financial services industry, which will accelerate innovation across the ecosystem with value-added services for blockchain networks. Marie Wieck, GM Blockchain
By hosting these services on a single, enterprise grade network, organizations can focus on business objectives rather than application development, enabling them to realize operational efficiencies and cost savings across asset classes.
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. Alan Marquard, Chief Strategy & Development Officer CLS
Main function of LedgerConnect app
LedgerConnect is designed to cater to financial services companies, not the end users. This is not a handy solution for crypto enthusiasts to locate DApps that they might wish to install on their PCs or phones (though such registries do already exist ). LedgerConnect serves instead as a way for financial institutions to access services that are hosted on a distributed ledger, with the promise that the solution is designed for regulated and security conscious organizations, according to the LedgerConnect announcement.
But because the services available from LedgerConnect are powered by IBM Blockchain Platform and HyperLedger Fabric, it may be a stretch to call them “apps” in the traditional sense. It appears that what IBM and its financial partners intend to offer will be fully hosted services that interact with IBM’s enterprise blockchain platform, rather than applications that an organization could download and use on its own infrastructure.
By hosting these services on a single, enterprise-grade network, organizations can focus on business objectives rather than application development, enabling them to realize operational efficiencies and cost savings across asset classes.
Advancing IBM’s enterprise blockchain mission
Whether LedgerConnect is really a blockchain app store in the traditional sense or not, its significance for IBM is clear. The solution will make it easier for financial services companies to access IBM’s enterprise blockchain platform. And banks will be able to share and collaborate around blockchain based services more seamlessly. In that sense, LedgerConnect could be a significant step in convincing more enterprises to adopt distributed ledger technology as a way to share information and process transactions between themselves. That’s a different, more expansive use of blockchain technology than using a permissioned blockchain for internal operations, like tracking inventory.
IBM hasn’t talked about what, exactly, the services available from LedgerConnect will look like. It’s also unclear when the platform will become generally available; for now.
IBM financial services provider partners
Nine financial institutions, including Barclays and Citi, are participating in the PoC (Proof of Concept) 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 PoC. It’s making it easier for banks to take advantage of distributed ledgers and use blockchain to collaborate with one another can only help the further adoption of blockchain technology. Although the details surrounding LedgerConnect remain murky for now and it may not be the same kind of app store that you can access on your phone, the initiative is a sign of positive momentum for distributed ledger technology in the financial services industry.