ANZ, Commonwealth Bank of Australia, Westpac, IBM and Scentre Group are to formally launch a blockchain-based platform that reduces the time to issue a bank guarantee from one month to one day.
Thousands of merchants around Australia need bank guarantees to secure a lease over a retail tenancy. Historically, these guarantees have been issued manually and on paper, with the process taking up to a month.
Lygon slashes the time to as little as a day, while also promising to reduce the risk of fraud and the potential for errors.
In a public demonstration of the technology, Lygon CEO and managing director Justin Amos said: “The technology and legal frameworks are ready for digital guarantees. Over the next few weeks, ANZ and other issuer banks will finalise their readiness at their own speed to utilise the platform.
“This will provide a clear pathway for applicants and beneficiaries to request the issuance of digital bank guarantees.”
Amos added that the technology can be applied to other types of financial instruments such as performance bonds “offering a wide range of opportunities to pursue as we expand Lygon’s reach and service offering”.
