BNP Paribas and EY explore private blockchain
Written by Chris Lemmon
BNP Paribas and EY have announced the completion of a pilot demonstrating the feasibility of using blockchain to optimise the global internal treasury operations of the bank.
The ALM Treasury department, which manages the bank’s internal treasury, carried out an internal blockchain pilot this summer. This pilot highlighted how an internal, private blockchain could be used to improve operational efficiency by providing a more integrated cash management approach between businesses, allowing greater flexibility and a 24/7 capability.
The pilot programme allows for treasury optimisation improvements and provides a common view of liquidity positions across locations globally. It also allowed the bank to boost the interoperability of the legacy systems combining the private blockchain with the existing IT environment via software robots and APIs.
This research project is part of a larger group of initiatives conducted by other entities of the bank regarding blockchain, for example the ‘Cash without Borders’ launched this year by the bank’s Transaction Banking business.
Emmanuelle Bury, BNP Paribas chief operating officer for ALM Treasury, said: “We launched the initiative 10 months ago with a view to address the current constraint on cash transfer capabilities limited to a range of seven to 10 hours a day and ways to enhance operational efficiency. It was also important for us to start exploring the blockchain possibilities, in particular given the interest Central Banks grants to those technologies.”
Jean-Michel-Bouhours, partner at EY Financial Services France, added: “Using an agile approach, this journey allowed the treasurers involved to break the current boundaries by reading an accurate cash position of another closed treasury location, and perform operations on behalf of these locations on several currencies.”