Yesterday it was
announced that five companies are collaborating to digitize bank guarantees using blockchain. The group is IBM, three banks ANZ, Commonwealth Bank and Westpac, and property company Scentre Group, which operates Westfield shopping centers in Australia and New Zealand.
Bank guarantees are often needed for retail property leases, and this is the initiative’s first use case with the potential to target other industries.
One of the advantages of using blockchain is that the bank digitally signs the issuance of the bank guarantee. In contrast, paper documents are prone to forgery. The other benefits are a reduction in errors and faster issuance, as quickly as the same day.
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