IBM, on Monday, launched a blockchain app store to help banks and other financial sector companies aimed at saving on back-end costs. LedgerConnect, a financial blockchain “app store”, aims at making it convenient for banks to access distributed ledger technology from fintech and software providers.
LedgerConnect is a joint effort between currency trading utility CLS and IBM, and has Barclays and Citigroup among others as its founding members.
Nine other financial institutions are participating in the PoC for LedgerConnect and have selected services from a number of vendors including Baton Systems, Calypso, Copp Clark, IBM, MPhasis, OpenRisk, SynSwap and Persistent Systems.
Using LedgerConnect, the companies can access Distributed Ledger Technology-based services for KYC processes, sanctions screening, collateral management, derivatives post-trade processing and reconciliation and market data.
This new hub will address a connectivity gap, where upstart fintechs and large tech firms alike are faced with the cost and complexity of spinning up their own distributed networks so banks can consume their various applications, according to Keith Bear, IBM’s vice president for financial markets.
LedgerConnect runs partly on a permissioned blockchain based on IBM’s blockchain platform, which was built on Hyperledger Fabric, and all the apps currently in the store are Hyperledger-based.