FinExtra, a fintech news outlet has reported that Standard Bank will soon be launching a private permissioned Blockchain.
South African Bank To Launch Overseas Exchange Trade Blockchain Platform
According to the 28th February reports, the soon to be launched Blockchain platform is slated to be used for facilitating overseas exchange trading for the South African bank’s corporate clientele. The platform which is expected to be going live in the second half of this year is established on the Hyperledger Fabric which is a foundation that utilizes modular architecture in the development of applications or solutions. The bank will also reportedly be connecting Shyft, its foreign currency trading app, to the platform.
The Blockchain based platform will purportedly make the processing of international trades, payments in foreign exchange and settlements faster. Additionally, the bank is looking to promote the transparency of transactions by making all the documentation accessible in real time by all parties.
Standard Bank’s head of foreign exchange Richard de Roos has stated that the Blockchain based solution has the potential to bring down incidences of trade failure. He added that the solution will also increase regulatory transparency as well as enhance visibility of liquidity.
Initiative To Move Into The Asian Market Through Industrial And Commercial Bank Of China
In its initial stage the Blockchain platform will be utilized by the South African Bank and its Ugandan partner Stanbic Bank as well as third party entities directly taking part in the Trades and Swift, an interbank network.
Additionally, with the South African Bank also having a working relationship with the ICBC (Industrial and Commercial Bank of China) it is expected that the permissioned Blockchain will also extend to that collaboration. According to the reports de Roos has confirmed that Standard Bank, alongside twenty of its franchises, is already in talks with ICBC about potentially extending the solution into the Asian market.
De Roos explained that the initiative is essentially a ‘hub and spoke’ agreement with the hub being the South African bank and its franchises located in various parts of Africa and the spoke being the payment rails which include Swift and Shyft. Through collaborating with ICBC, Standard Bank will be able to expand the hub into Asia.
De Roos stated that the bank will be including Shyft, its foreign currency trading app which enables customers to gain access to various payment distribution collaborators and e-commerce platforms.
The Rise And Rise Of Blockchain Technology And Cryptocurrencies
A working group associated with the financial regulatory organizations in South Africa released a Cryptocurrency based consultation paper in the beginning of the year. Through the paper officials were encouraging members of the public to take part in the development and drafting of Crypto based regulations for the county’s Crypto sector.
Intel has also recently launched a Blockchain initiative developed on the Hyperledger Fabric. The commercial Blockchain package will also be utilizing Ethernet Network adapters and Xeon Processors to boost the adoption of Blockchain technology by businesses who are looking to launch a Blockchain network of their own.