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.
- Five days left until Blockchain Startup Exscudo ICO - April 21, 2017
- Apptrade to Reward Crowdsale Participants with Three Percent Bonus - April 21, 2017
- Blockchain Technology Startup Humaniq Raises $3.8M and Signs Contract With Deloitte - April 21, 2017
- Monolith Studio Announces Crowdsale for TokenCard, the First Debit Card Powered by Smart Contracts - April 20, 2017
- Blockchain Co. SingularDTV Recruits Hollywood VP - April 18, 2017
- Factom Closes Extended Series A Round of $8 Million Following Harmony Product Launch - April 18, 2017
- Interview with Back to Earth founder Clay Space - April 18, 2017
- Ethereum Movie Initial Coin Offering Sell Out - April 18, 2017
- Insurtech Startup Etherisc Wins “Blockchain Oscar” for Innovative Insurance Platform - April 14, 2017
- India’s Blockchain Community Launches Digital Asset and Blockchain Foundation - April 14, 2017
- UK EPSRC Supports Seven Blockchain Projects with £3.6 Million - April 14, 2017
- Dutch National Blockchain Coalition Presents Action Agenda - April 14, 2017
- Broadridge, J.P. Morgan, Northern Trust and Banco Santander Successfully Complete Pilot of for Blockchain Voting - April 14, 2017
- Blockgeeks Labs to Hold Blockchain Hackathon in Toronto - April 14, 2017
- Exscudo network EON coins are available for pre-order - April 13, 2017
- One of Big Four accounting firms is now legal adviser of Exscudo - April 12, 2017
- Dash Cryptocurrency Signs on with Kraken - April 12, 2017
- Blockchain Capital Closes ICO – $10 Million in Six Hours Raised in Record Time - April 11, 2017
- Ethereum meets Hyperledger – Burrow Ethereum Smart Contract Machine to Join Hyperledger - April 11, 2017
- Porsche Announces First Blockchain Contest - April 10, 2017
- Fidelity Labs Joins IC3 Blockchain Group - April 10, 2017
- Global Graphchain Project FERMAT Announces Distributed Governance Model Featuring Contribution Contracts - April 10, 2017
- Coinsilium and Oraclize sign MoU to form Strategic Alliance - April 10, 2017
- Industry Thought Leaders Invest With Blockchain Capital in its Ground-Breaking ICO - April 8, 2017
- Novus To Launch Innovative Blockchain Advanced File Index System - April 5, 2017
- Lykke Announces OEM Services – Lykke Accelerator - April 5, 2017
- BitHub.Africa Announces ICO Campaign to Foster Region’s Cryptocurrency Ecosystem - April 5, 2017
- SibCoin: Siberia Down, China to Go - April 4, 2017
- Groundbreaking Blockchain Research to Feature at International Financial Cryptography Conference - April 4, 2017
- Exscudo, The Nextgen Financial System, Announces ICO - April 4, 2017
- A Film by Manuel Stagars – The Blockchain And Us Video Documentary – Released in Full - April 4, 2017
- Genpact Harnesses Blockchain Technology to Transform F&A Operations to Improve Cash Flow and Enhance Customer Experience - April 4, 2017
- Blockchain Startup TaaS Partners With Exchange Platforms - April 4, 2017
- Synereo announces Qrator – The First Attention Economy App - April 4, 2017
- Blockchain Capital Releases Offering Memorandum for Its $10 Million Digital Token Offering - April 4, 2017
- Lykke Announces Availability of Blockchain Startup ChronoBank TIME Token - April 3, 2017
- Blockchain Workspace Launches Blockchain Education Company in Amsterdam, Netherlands - April 3, 2017
- Blockchain Startup SingularDTV Goes Hollywood - April 1, 2017
- Ledger Raises $7m To Accelerate Worldwide Adoption Of Security Solutions For Blockchain And Cryptocurrency Applications - March 31, 2017
- Slock.it secures $2 million seed funding to build Sharing Economy Platform - March 31, 2017
- Open Source Blockchain Project MultiChain Adds Fourteen New Partners and Enters Beta - March 30, 2017
- Tokenization in the Age of Blockchain - March 30, 2017
- European Commission Proposes Blockchain Pilot to Examine Regulatory Issues - March 30, 2017
- BitPesa has Partnered with Bitcoin Company Bitbond to Improve Access to Financing for SMEs in Africa. - March 30, 2017
- Switzerland’s SIX Securities Services Develops Blockchain-Based Bond Issuing Solution - March 30, 2017
- Beijing Officials Demand Chinese Blockchain Standards - March 30, 2017
- Spanish Bank BBVA joins Hyperledger Project - March 30, 2017
- Alibaba to Tackle Counterfeit Food in China With Blockchain - March 30, 2017
- Cosmos Announces Upcoming Token Sale to Build Internet of Blockchains - March 29, 2017
- Blockchain Technologies Corp. Speaks Before Maine State Legislature Committee on Blockchain Voting - March 29, 2017