Four banks trial blockchain platform ‘finledger’ for processing promissory note loans

Four financial institutions have successfully issued a promissory note using a blockchain platform, Cointelegraph reported.

The participating banks – DekaBank, dwpbank, DZ Bank and Helaba – have carried out a pilot transaction that involved the issue of a promissory note loan through a newly created blockchain platform ‘finledger.’

In its press release, Helaba said that the platform offers the opportunity to digitally execute the entire process. It eliminates the need for lenders to physically hold documents or for borrowers to send valuables and enables to execute all individual processes in a matter of seconds.

“The finledger platform reduces the individual steps by more than 50% compared to the previous multi-level processing process,” the release said (translated online).

The pilot transaction marks the first step in finledger's two-step go-live, the release said. For the subsequent phase, the banks will team up with a project-independent partner. They plan to launch the platform for the entire industry.

“As digitization has progressed, our customers' demand for digital services has increased significantly. Thanks to the bundled expertise of four banks, we are now presenting a new platform through which trading transactions can be processed fully automatically,” Peter Tenbohlen, the head of operations at DZ Bank, said.