The world's largest bank aims to create a blockchain system for the exchange of financial assets

The Industrial and Commercial Bank of China (ICBC), one of the four commercial banks owned by the State and one of the most capitalized globally, would be interested in patenting a blockchain system for the exchange of financial assets.

According to the patent application filed by the bank at the beginning of the year and filtered last Friday, the system would be designed to design a platform where the participating institutions would act as nodes to create a distributed network.

When a user of one of the participating institutions initiates a transaction request, an intelligent contract would be created automatically for each node to validate the transaction based on the information provided, including the account balance of the issuer, the name and amount of the transaction. transaction. Thus, each transaction would be completed when the network had received sufficient validations from the nodes involved considering a certain threshold.

This concept, according to the document, would seek to eliminate existing intermediaries in the current system and thus enhance the liquidity of financial assets. They would also seek to improve a slow and costly system that would not currently facilitate international inter-bank transactions.

"The traditional chain of transactions is built around a centralized credibility system that incurs problems of high cost, low stability, low efficiency and little flexibility. This prevents banks from keeping up with the rapid demand for innovative financial products. " Point out the patent application.

Also, this would be the most novel blockchain initiative presented by this institution to date, according to the China State Intellectual Property Office, because at the moment they would also be interested in developing a blockchain system that can verify the information of the users using a distributed network.