The Postal Savings Bank of China has teamed up with IBM and announced the launch of its blockchain-based asset custody system.
The Postal Savings Bank of China (PSBC) worked with IBM and used the Hyperledger Fabric to create the first deployment in China to apply blockchain technology to asset custody in the financial industry.
As part of its work, the bank has also successfully executed more than 100 real business transactions on the blockchain since the system went live in October 2016.
Cost and Trust Efficiencies
As one of China’s leading retail banks, PSBC has been embracing financial technology innovation to speed its research in advanced financial products, technologies, processes and business applications. Asset custody now represents an approximately four trillion RMB business for the bank.
«Blockchain technology has the potential to eliminate the trust frictions in financial business activities at a very low cost and enables the efficient exchange of information for all the parties involved in a transaction,» said Lyu Jiajin, (pictured) President, PSBC.
Last year IBM signed a contract with the Bank of Tokyo-Mitsubishi UFJ to examine the design, management and execution of contracts among business partners using blockchain technologies.
