According to Cointelegraph, TCS’ platform, dubbed Digital Bank Guarantee, is based on the Quartz blockchain and targets the digital banking industry in Israel. The new tool will reportedly help banks more efficiently manage the lifecycle of bank guarantees including issuance, modification, termination and invocation.
Bank guarantees are a financial safeguard offered by banks, in which a lender ensures the obligations of a debtor are met. If a debtor fails to settle a loan, the bank will cover the cost.
The solution will create a dedicated node for issuers in order to transmit digital guarantees. The platform will ultimately be extended to other use cases besides bank guarantees, according to TCS.
According to Bank Hapoalim CEO Dov Kotler, Digital Bank Guarantee will allow the bank to develop its client base to among corporations, small- and medium-sized enterprises and individuals.
The immutable aspect of blockchain technology has become progressively famous with financial institutions dealing with different forms of debt.
