Standard Chartered partners with Siemens to digitize Bank Guarantees
The International bank, Standard Chartered is collaborating with the finance department of a large manufacturing company, Siemens. The partnership aims to set-up a trial plot that digitizes bank sureties for exchanges by using blockchain technology.
As indicated by a statement from IBS Intelligence, the trial plot – that incorporates help from advanced record company TradeIX – is meant to transform the procedure from the conventional paper-exhaustive method to a completely digitized issuing of bank guarantees. The entire process utilizes the self-executing contracts.
Constructed with a new blockchain by R3's open-source Corda stage, with an application cover given by TradeIX, the "industry-characterizing arrangement ... will change the manner in which bank sureties are organized and supplied," stated Motasim Iqbal, a director of Standard Chartered in the United Arab Emirates.
In case the trial succeeds, it will enable companies such as Siemens to offer new competences for large-scale customers, digitizing issuing of guarantees, corrections and cases, as per the statement.
Michael Bueker, the CFO of Siemens, anticipates that incorporating the blockchain exchange arrangement into the association's day by day tasks will "simplify the procedures and influence our exchange activities flawless, speedier and more productive."
Established early this year, the pilot is estimated to be finished in late 2018.
This isn't the initial attempt by Standard Chartered to be interested in blockchain: truth be told, in 2015 the financial institution was publicizing the capability of the technology in exchange fund.
Since then, it has set out on different pilots and advancement collaborations. Lately, it has partnered with a blockchain-supported transfer company called Ant Financial, where it acts as the banking partner. Ant Finance also allows transfer of funds for clients shopping on Alibaba.
Just like letters of credit, bank guarantees are handed out by loaning institutes promising to pay any liabilities incurred by a borrower.