Recently, ANZ Bank, Westpac, and Commonwealth Bank joined forces to found Lygon, a company that will switch traditional bank guarantees signed on paper for blockchain-based smart contracts.
Now – after a successful pilot with its founders and 20 other Aussie businesses – Lygon seems to be going commercial.
Speeding up SLAs
Up until now, banks would issue physical guarantees after an arduous KYC procedure that could take up to a month to complete.
With Lygon, the expected SLA has shrunk to a single day. The three Australian banks ANZ, Westpac, and CBA Switch – partnered with the Scentre Group – are planning to market the Lygon platform for commercial use, according to a report published on the 1st of September.
When asked for comment, Nigel Dobson, the chairman of Lygon, stated the following:
“The commercialization of the Lygon platform represents a significant milestone for blockchain technology in Australia and globally. We’ve gone from a proof of concept to a newly incorporated company and commercially available platform in two years – at a time when the demand for digital has never been stronger. In digitizing a bank guarantee, we’ve essentially transformed a three-way contract. We’ve digitized the paperwork, the process, and the legality behind it. This means wherever there’s a manual, paper-based process based on legal frameworks or similar regulations, we can apply Lygon.”
Lygon is reported to have brought new applicants on board within in under 15 minutes – a great show of interest in the platform to be certain.
In addition to checking potential customers credit, Lygon will support several common bank operations such as including amendments and cancellations.
After the commercial launch of the blockchain banking platform, Lygon shareholders say they plan to expand into New Zealand and other international markets in 2021. In order to garner more interest in the platform, the developers have promised more features to come soon.