The Postal Savings Bank of China (PSBC) has partnered with tech giant IBM to introduce its blockchain-based asset custody system.
The two entities utilized Hyperledger Fabric to create the first deployment in China to apply blockchain technology to asset custody in the financial industry.
The announcement comes after a two-month trial, which saw more than 100 real business transactions involving buying and selling bonds that represents business of nearly RMB4trillion.
IBM said that each transaction involved the settlement of large sums of money and multiple participants exchanging data, each with its own information system relying on verification systems such as telephone, fax and mail, potentially creating delays, discrepancies and risk with reporting between entities.
PSBC president Lyu Jiajin said: “Blockchain technology has the potential to eliminate the trust frictions in financial business activities at a very low cost and creates trust and enables the efficient exchange of information for all the parties involved in a transaction. This technology has the potential to fundamentally transform the financial industry.
“Today, with a booming fintech and business innovation in the financial industry, we expect to join hands with more financial institutions to build the ecosystem for financial industry based on blockchain technology.”
IBM Greater China Group chairman Chen LiMing said: “The successful launch of PSBC’s blockchain-based asset custody platform demonstrates the high impact the technology can have on the financial industry. As the technology evolves, we expect to work with PSBC to define and develop new solutions, drive adoption of blockchain in more lines of business and support more organizations in China and around the world as they build their blockchain ecosystems and create a more efficient and trusted business environment.”