An international collaboration project has successfully used blockchain technologies to provide bank guarantees.

The Australia and New Zealand Banking Group (ANZ), Australia’s Westpac bank, shopping centre operator Scentre Group – and IBM – harnessed the Distributed Ledger Technology (DLT) as a secure replacement to paper-based solutions. That’s because Blockchain offers a digital trail that can’t be changed.

Andrew McDonald, General Manager Corporate and Institutional Banking at Westpac, said: “This is about removing the cost of fraud, error and operational risk that will continue as long as bank guarantees remain paper-based and manually issued.

“Next steps involve encouraging all industry players to adopt this technology so we can better protect and save money for our customers. Beyond that there is no reason why this couldn’t be applied across other industries.”

The companies involved in the initiative have published a white paper explaining how it works.