Distributed ledger banking piloted by Wells Fargo and ANZ

10 October 2016

Wells FargoAn American banking services and financial holding company Wells Fargo and Australian ANZ are partnering over the launch of a united distributed ledger service to enable improved reconciliation of corresponding banking payments and mutual settlements. In view of some drawbacks featuring the established Swift system where banks partner with each other on a transnational level using local currencies of their partnering banks for transactions between different countries, the two companies decided to test the prototype blockchain system for corresponding relationship of banks.

In view of difference in local currencies and different bank accounts the reconciliation process is complicated and cramped. The two financial giants believe that the diminishing transaction transparency resulting from such sophisticated procedure of settlement may be addressed by the new platform.

An executive at ANZ notes that this proof of concept model of the distributed ledger platform is successful and demonstrates the achievements that can be made by technologies and cooperation among the industries.

Despite the unique idea and potential of the system the complete volume of advantages can be enjoyed only provided that it is implemented by the whole industry.

The prototype distributed ledger platform created by the two banks contributes to the enhancement of the reconciliation process and can seamlessly function simultaneously with the established platform.

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