HomeBankingThailand's KBank to Start Digitizing Contracts With Blockchain by 2018

Thailand’s KBank to Start Digitizing Contracts With Blockchain by 2018

-

One of Thailand’s largest commercial banks is looking to digitize some of its financial contracts through a new blockchain solution developed with IBM.

Kasikorn Bank, or KBank, revealed today that it wants to move away from paper-based letters of guarantee – which are commonly issued by banks to ensure the delivery of certain types of securities – to a wholly digital format.

The process won’t happen overnight, though. According to KBank, the plan involves digitizing 35 percent of the total amount of these contracts it generates by the end of next year. For a sense of the scale, KBank said that it expects to issue as much as $9 billion in letters of guarantee during that time.

Of those, 5 percent will be executed on the blockchain-powered platform, which uses the Hyperledger Fabric software as a basis. And looking ahead, KBank wants to find other partners that would use the platform.

As Pipit Aneaknithi, KBank’s president, explained in a statement:

“Blockchain technology is applied to create highly secure networks of document filing and retrieval. As Thailand’s largest issuer of Letters of Guarantee, KBank is working with IBM to implement this innovative technology to further define and articulate our leadership in this market.”

The solution was previously tested in conjunction with Thailand’s central bank as part of its regulatory “sandbox”, or a framework in which new kinds of financial tech can be trialled in a limited setting.

As reported previously, KBank has been working with IBM to develop blockchain solutions for certifying the veracity of documents.

LATEST POSTS

Cyprus registers Binance as a cryptocurrency service provider.

Binance, a cryptocurrency exchange, will be able to provide services for virtual currencies in Cyprus as a result of the platform's recent registration with the...

More than 24,000 ATMs in Brazil will offer USDT through Tether and Smartpay.

Usdt, the largest dollar-pegged stablecoin on the market, was created by Tether, a company. Tether recently announced that more than 24,000 ATMs in Brazil will...

To solve the blockchain modularity issue, Celestia raises $55 million.

The project Celestia, which seeks to address the alleged centralization issue in the current monolithic blockchains, has announced the completion of its most recent funding...

Hong Kong considers removing the “Professional Investor-Only Requirement” and allowing retail investors to trade cryptocurrency.

Securities and Futures Commission (SFC) of Hong Kong's director of licensing and head of the fintech division both confirmed that the regulator is taking into...

Follow us

13,033FansLike
3,912FollowersFollow
0SubscribersSubscribe

Most Popular

spot_img