Despite initial skepticism by banks, world’s top banks are now widely embracing blockchain technology and plan to utilize it to increase the efficiency and security of banking processes. This move will allow participating banks to deliver real time results when comparing data against their peers.
UBS leads the banking revolution
Under the leadership of the Swiss banking giant UBS, major banks including Barclays, Credit Suisse, KBC, SIX and Thomson Reuters are working together to simplify their compliance processes ahead of the forthcoming MiFID 2 regulatory measures.
It has been six gruesome months for the team referred to as MADREC (Massive Autonomous Distributed Reconciliation Platform) since they have been working on the pilot project set to be completed at the end of next month.
Banks set to benefit from the Ethereum platform
One would question if this will negatively impact the competitive advantage of the individual banks.
Peter Stephens’ (head of UBS blockchain R&D) efforts has annulled any such fears. He claims that this was a joint effort that would help banks improve the accuracy of their transactions by benchmarking against each other. This, he said would eventually impact their bottom lines positively.
The project will be implemented on the Microsoft azure cloud, a system that will enable sharing of large data anonymously. Anonymity will be accomplished by the use of hash values that obliterate the original source of the data.
The overall aim of the project is to help banks reconcile massive amounts of data about their counterparties while maintaining accuracy and privacy.
This situation makes it clear that application of smart contracts on the Ethereum platform are making an impact across diverse sectors.
What we are witnessing in the banking sector is just a tip of the iceberg!