World's Largest Bank to Use Blockchain for Asset Exchange
July 10, 2018
The Industrial and Commercial Bank of China (ICBC), the head of the Big FOur of China’s banks and one of the world’s largest banks by total assets, tries to patent a blockchain system for financial asset exchange.
According to the patent application filed by the bank in January and disclosed lately, the system implies a platform with all involved institutions functioning as nodes to comprise distributed network.
When user from one institution initiates transaction request he starts a smart contract making each node check the transaction in the view of the provided data including account balance, name and the sum of the transaction. The deal will be considered completed as soon as the network receives verification from the nodes for consensus.
Basing on the document, the purpose of the concept is to remove intermediate parties from the existing system and improve liquidity of financial assets.
ICBC clarified in its statement that it began studying blockchain as the current system is slow and expensive when regarding interbank or cross-border transfers for both regular payments and financial instruments like precious metals and futures products.