Asian Development Bank uses blockchain for cross-border securities transactions

The Philippines-based Asian Development Bank (ADB) has launched a blockchain project to improve the efficiency of cross-border securities transactions in the Asia-Pacific region. The 68-member regional development bank aims to use blockchain to directly connect central banks and securities depositories in the Association of Southeast Asian Nations region and Japan, China and South Korea (ASEAN+3). Currently, cross-border securities transactions in ASEAN+3 are processed through global centers in the United States or Europe and take at least two days to settle. By connecting directly to central banks, ADB and blockchain companies including ConsenSys, Fujitsu, R3 and Soramitsu are seeking to reduce transaction costs and settlement risks, ADB said in a press release. The scope of the project also includes assessing system interoperability and the viability of a central bank digital currency (CBDC) in the region. The design phase of the project is expected to be completed by the end of March 2022, with the prototype phase due next quarter.