Today IBM and CLS announced a proof of concept ecosystem, LedgerConnect, targeted at the financial services industry. The project hasn’t yet launched but work started last year. CLS is a market infrastructure group. Its multi-currency cash settlement for the foreign exchange market is classified as ‘systemically important’ by US regulators. Less than two months ago
CLS invested in R3, IBM’s main blockchain competitor.
The plan with LedgerConnect is for a single network to host multiple shared services. These include know your customer (KYC), sanctions screening, collateral management, market data, and derivatives post-trade processing and reconciliation. The aim is for participants to gain efficiencies and cost savings across asset classes.
The PoC involves nine financial institutions, including Citi and Barclays. Vendors include Baton Systems, Calypso, Copp Clark, MPhasis, OpenRisk, SynSwap and Persistent Systems. Baton recently participated in a
Bank of England test.
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