Postal Savings Bank of China (PSBC) Announces First Blockchain Financial Service

269
ADVERTISEMENTSSpectre Token SaleParagon ICO Atlant ICO Ties

Share with:


The Postal Savings Bank of China (PSBC) announced Tuesday that it has become the first Chinese bank to use Blockchain, launching its Blockchain-based asset custody system. As part of its work, the bank has also successfully executed more than 100 real business transactions on the Blockchain since the system went live in October 2016.

PSBC worked with IBM and used Hyperledger Fabric to create the first deployment in China to apply Blockchain technology to asset custody in the financial industry.

Lyu Jiajin, President, PSBC, said:

“Blockchain technology has the potential to eliminate the trust frictions in financial business activities at a very low cost and creates trust and enables the efficient exchange of information for all the parties involved in a transaction. This technology has the potential to fundamentally transform the financial industry. Today, with a booming fintech and business innovation in the financial industry, we expect to join hands with more financial institutions to build the ecosystem for a financial industry based on Blockchain technology.”

“The successful launch of PSBC’s Blockchain-based asset custody platform demonstrates the high impact the technology can have on the financial industry. As the technology evolves, we expect to work with PSBC to define and develop new solutions, drive adoption of Blockchain in more lines of business and support more organizations in China and around the world as they build their Blockchain ecosystems and create a more efficient and trusted business environment,” said Chen LiMing, Chairman, IBM Greater China Group.

As China’s leading retail banks, PSBC pays attention to the technology innovation to speed its research in advanced financial products, technologies, processes and business applications. As part of these efforts, the bank worked with IBM to develop an asset custody system built on Hyperledger.

Upon completion of a Design Thinking workshop and joint development work with IBM, the bank embarked on a two-month trial operation, during which it completed over one hundred asset custody transactions involving buying and selling bonds. During the trial, the system demonstrated Blockchain’s ability to help streamline the traditionally complex credit verification process and manage risk, helping financial institutions operate more securely and efficiently.

As one of PSBC’s core businesses, asset custody now represents an approximately four trillion RMB business. Asset custody process typically involves multiple parties, including financial institutions, clients, asset custodians, asset managers and investment advisors and auditors. Each transaction involves the settlement of large sums of money and multiple participants exchanging data, each with its own information system and often relying on verification systems such as telephone, fax and mail, potentially creating delays, discrepancies and risk with reporting between entities.

PSBC’s Blockchain solution enables the real-time sharing of information by multiple parties, eliminates repeated credit verifications, which reduces the operation process by about 60%-80%1 and helps make information exchanges more efficient. The smart contract and consensus mechanism integrates investment compliance verification regulations into the Blockchain, and ensures that transactions are completed after contracts are satisfied and a consensus is reached. The immutability and encryption built into the Blockchain ensures that account information remains secure while allowing the quick sharing of necessary information by transaction participants. Furthermore, Blockchain technology helps auditing and supervising parties quickly gain information, intervene and exercise control, thus improving the efficiency of risk management across the industry.

 

The new PSBC asset management system using Blockchain allows real-time information sharing and enhanced scrutiny among stakeholders.

Blockchain, the underpinning technology of digital currency, is expected to revolutionize the financial sector and is part of China’s 13th Five-Year Plan for information technology.

About Richard Kastelein

Founder of industry publication Blockchain News, partner at ICO services collective CryptoAsset Design Group (helped raise over $200m+), director of education company Blockchain Partners (Oracle Partner) and ICO event organiser at leading industry event  CryptoFinancing (first ICO event in Europe) - Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He sits on the advisory boards of half a dozen Blockchain startups and has written over 1200 articles on Blockchain technology and startups at Blockchain News and has also published pioneering articles on ICOs in Harvard Business Review and Venturebeat.
 
Kastelein has spoken (keynotes & panels) on Blockchain technology in Amsterdam, Antwerp, Barcelona, Beijing, Brussels, Bucharest, Dubai, Eindhoven, Gdansk, Groningen, the Hague, Helsinki, London, Manchester, Minsk, Nairobi, Nanchang, San Mateo, Shanghai,Tel Aviv and Venice. His network is global and extensive.
 
He is a Canadian (Dutch/Irish/English/Métis) whose writing career has ranged from the Canadian Native Press (Arctic) to the Caribbean & Europe. He's written occasionally for Harvard Business Review, Wired, Venturebeat, The Guardian and Virgin.com and his work and ideas have been translated into Dutch, Greek, Polish, German and French.
 
A journalist by trade, an entrepreneur and adventurer at heart, Kastelein's professional career has ranged from political publishing to TV technology, boatbuilding to judging startups, skippering yachts to marketing and more as he's travelled for nearly 30 years as a Canadian expatriate living around the world.
 
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, "The Hitchhiker's Guide to the Seas' travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, Netherlands where he's raising three teenage daughters with his wife and sailing partner, Wieke Beenen.

Visit Website
View All Articles
advertisement