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ADB plans to create blockchain network for Asia cross-border securities transactions
THE Asian Development Bank (ADB) has launched a project which uses blockchain technology to improve the efficiency and security of cross-border securities transactions in Asia and the Pacific.
ADB said in a press statement on Wednesday (Jan 26) that it plans to create a blockchain network to connect central banks and securities depositories in the Asean+3 region, which includes Asean members, Japan, China and South Korea.
Directly connecting these institutions could reduce transaction costs and reduce the risk of securities not being exchanged within an agreed timeframe, ABD said.
Currently, Asean+3 cross-border transaction settlements take at least 2 days because they are required to go through global centres in either the US or Europe. The time differences and the varying operating hours for markets within the same timezone are the main causes for the delay.
ADB expects the project to be fully completed by the end of 2022. The first designing phase will be completed by the end of March 2022 and the second prototyping phase is scheduled for the second quarter of 2022.
“ADB is partnering with ConsenSys, Fujitsu, R3, and Soramitsu on the project, which will also examine systems interoperability and the viability of central bank digital currencies in the region,” the bank said.
The project is supported by the bank’s digital innovation sandbox programme, a platform for partners across public and private sectors to collaborate on digital solutions.
Source: https://www.businesstimes.com.sg/asean-business/adb-plans-to-create-blockchain-network-for-asia-cross-border-securities-transactions