Lygon represents an industry solution that the participants could not have individually implemented. ANZ, Commonwealth Bank, IBM, Scentre Group and Westpac have brought together their deep understanding of industry processes to design the Lygon platform.
The Live Pilot
The pilot, focusing on
retail property leasing, will take place over an 8-week period and will
support live data, transactions and legally binding bank guarantees. Tenants, landlords and banks will
access a common platform that manages the bank guarantee process. Lygon plans to expand the range of digitised bank guarantees across other industries and offering its services to other customers in the retail property sector.
After the pilot, Lygon intends to offer access to the platform to all issuers, applicants, and beneficiaries and support broader use cases over time.
Case for Change
For decades, bank guarantees have been paper-based instruments that rely on physical delivery, storage and verification. There is very little standardisation across participating organisations and the processes are fraught with both inefficiencies and risk to the parties involved. In the context of retail property, this applies to issuing banks, landlords and retailers of all sizes that need bank guarantees.
Using Distributed Ledger Technology, issuers, applicants
and beneficiaries of bank guarantees can smoothly communicate through a digital platform that
- Paperless, alleviating costs, risks and delays associated with issuing,
exchanging, retrieval and potential loss of paper-based guarantees
- Transparent, allowing tracking, reporting and validating the status of a
guarantee throughout its lifecycle
- Standardised, reducing manual effort to review and negotiate various terms
and conditions across multiple parties
- Secure, allowing communication between authorised parties on a distributed, immutable