After joining forces in July 2019 to progress work on a blockchain-based bank guarantee platform, ANZ bank, the Commonwealth Bank of Australia (CBA), and Westpac announced, alongside IBM and shopping centre company Scentre Group, the formation of Lygon.
On Tuesday, Lygon announced minting the industry’s first standardised digital bank guarantee.
Claimed as the first time blockchain has been used for a commercial banking product in Australia, the “national financial services infrastructure” went live over the weekend, which saw the successful digitisation of a bank guarantee.
The Lygon platform runs on the IBM public cloud. It leverages the IBM Blockchain Platform, which is built on top of Hyperledger Fabric, an open-source blockchain project from the Linux Foundation.
It was designed as a new piece of infrastructure by the group aimed at being “at the crossroads between finance and technology”.
Speaking at the launch on Tuesday, ANZ banking services lead and Lygon chairman Nigel Dobson said the idea came from commercial property owners being frustrated by an archaic process that banks had forced upon them.
“Gave them friction, gave them paper, and gave them worry,” he said.
“The parties that are now involved … have had a truly enduring collaboration around solving an industry problem that is unseen and not much light is shed on it … but it definitely was a pain point and a friction point for many recipients.