ANZ, the well-known banking institution in Australia and New Zealand has announced that it will be using a shared ledger, which is similar to Bitcoin blockchain for the reconciliation of international payments with another banking partner based out of the United States. The banking major has however not clarified who the banking partner in the United States is.
While the name of the US bank still remains under wraps, the Hyperledger project, an initiative of Linux Foundation supported by a long list of founding members from information technology, blockchain and finance sectors has been the one to sponsor this partnership. Incidentally ANZ Bank along with ABN AMRO, BNY Mellon, The Depository Trust and Clearing Corporation, SWIFT, Wells Fargo, Accenture, Blockchain, Calastone, Cisco, CLS, CME Group, ConsenSys, JP Morgan, NEC, NTT DATA, R3, Red Hat, IBM, Intel, Hitachi, Digital Asset Holdings and others is one of the founding members of Hyperledger Project.
In a report, the General Manager of Group Payments, Technology , Services and Operations at ANZ Bank – Nigel Dobson explains this collaboration as a cooperation between counterparties to combat fraud and it is not about making some kind of big transformation of the banking operations.
“This example for trade finance is more about counterparties co-operating sensibly to combat fraud, rather than any ‘transformative’ technology being deployed.”
Initially, the shared ledger will be implemented between ANZ Bank and the other party on a trial basis. If it is found successful by the end of this year, ANZ Bank intends to expand its application to other counterparties in a private community.
ANZ Bank has been taking a defensive approach when it comes to talking about blockchain technology, trying not to use the collective term when it comes to the latest ‘shared ledger’ project. However, there is no denying that the underlying technology of the Bitcoin network has been gradually transforming the banking and financial industries across the world.
Ref: Banking Technology