Firm: King & Wood Mallesons (Scentre Group, Australia and New Zealand Banking Group, Westpac Banking Corporation, the Commonwealth Bank of Australia and IBM)
Deal: The joint clients have launched Lygon, a new digital platform that modernises the way customers obtain and manage bank guarantees using blockchain technology.
Key players: The KWM team acting as counsel to the joint project was led by partners Scott Farrell and Annabel Griffin.
Deal significance: Lygon will be tested in an eight-week live pilot that will involve a group of retail property leasing customers that use bank guarantees to secure a lease over a retail tenancy, according to a statement from KWM.
“Using blockchain technology to issue a bank guarantee enables the transition from paper to digital and significantly reduces the risk of fraud for the parties involved and decreases the margin for error,” the firm said.
“Bringing this project to market through a joint project between leading market participants represents the next step in the maturity of sophisticated blockchain solutions and their viability for the modern customer.”
Commenting further on the launch, KWM partner Scott Farrell said: “The Lygon project shows how blockchain technology can be used to increase the transparency of transactions while improving security and maintaining privacy for those involved.
“We are delighted to have had the opportunity to advise these important organisations to bring this significant project to fruition together and look forward to the success of the pilot.”