The Postal Savings Bank of China (PSBC) has announced the launch of its blockchain-based asset custody system, in partnership with IBM, today. IBM claims this to be the first case of blockchain technology to asset custody in China.
With over 40,000 branches and 500 million individual customers in China, the bank sees its assets totaling 7.3 trillion yuan ($1.09 trillion, 2015 figures), making it figure among the top 25 banks in the world.
The announcement comes following a two-month trial that saw over a hundred real business transactions executed on a blockchain developed using the open-source Hyperledger fabric. The trial saw transactions involving buying and selling bonds in one of PSBC’s core businesses, an area of banking that’s approximately worth 4 trillion RMB (approx. $577 billion).
A typical asset custody transaction sees settlement of large sums of money with multiple participants in the process exchanging data while reliant on legacy verification systems individuals. The blockchain trial, the PBOC revealed, helped streamline traditionally complex credit verification process while managing risks to enable more efficient operations