Microsoft and Bank of America of Merrill Lynch implement a blockchain in banks

2016: Microsoft and Bank of America of Merrill Lynch implement a blockchain in banks

On September 27, 2016 the software maker Microsoft and Merrill Lynch Bank of America financial company announced a joint pilot project on automation of banking activities by means of blockchain technology. Within cooperation partners aim at acceleration and reduction in cost of financial transactions and also increase in their security and transparency.

Microsoft and Bank of America of Merrill Lynch intend to use a blockchain for upgrade and automation of financial transactions by means of a cloud platform of Microsoft Azure.

Microsoft and Bank of America of Merrill Lynch announced a blockchain project which as they calculate the companies, will help to accelerate and reduce the price of banking activities and also to improve their security and transparency

Working with Bank of America of Merrill Lynch over blockchain technology in a cloud, we aim to increase efficiency and to reduce risks of the interbank transactions — the chief financial officer of Microsoft Amy Hood says. — The companies worldwide, including Microsoft, carry out digital conversions to grow, compete and be more flexible. In a blockchain we see the huge potential for such transformation.

As of the end of September, 2016 of Microsoft and Bank of America of Merrill Lynch develop and test the application which should replace the reserve letter of credit (the bank guarantee for carrying out this or that financial transaction). The program is under construction on service of Azure Blockchain as a Service.

First the new solution will be implemented in work of Bank of America of Merrill Lynch, and then is going to develop the platform which can be set in IT systems of other banks on the basis of this product. Partners did not call any implementation time.

It should be noted that not only Microsoft and Bank of America of Merrill Lynch are engaged in development of blockchain technology in the financial sector. In 2016 the international blockchain consortium R3 CEV (includes tens of the largest banks), which participants set the tasks of standardization of protocols of application of a blockchain and simplification of process of implementation of new finance solutions was created. Microsoft cooperates with R3 CEV.^[1]

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