Collaborative Design

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.

Our Solution

Using Distributed Ledger Technology, issuers, applicants and beneficiaries of bank guarantees can smoothly communicate through a digital platform that is:

  • 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 ledger