The Central Bank of Lithuania (LB) has officially finished the research phase of the world’s first blockchain-based regulatory project.
The program called LBChain is the blockchain-based regulatory sandbox, intended for the Fintech companies. It involved the development and testing of the platform, that combines both technological and regulatory infrastructures for the blockchain ecosystem.
According to the official statement of Lithuanian Central Bank, the LBChain platform was used by 11 Fintech companies from 8 European countries. The platform created for the research phase was based on Hyperledger Fabric and Corda, it was developed by IBM Polska Sp. z.o.o and TietoEVRY.
Blockchain regulatory sandbox for Fintech
LBChain sandbox, launched in 2018, was first intended for FinTech companies. The platform allowed the participants to carry out blockchain-oriented research, develop their blockchain-based services, and test them in the legal environment with the regulatory oversight.
Reportedly, the platform was designed to help financial companies and startups to conduct research, test and adapt their blockchain-based services into their businesses. According to the LBChain manager Andrius Adamonis:
LBChain has proved to have enormous potential. It is the cradle of future technologies, offering the opportunity of creating state-of-the-art solutions. Having been already tested by financial market participants, the platform may also be applied in such fields as energy or healthcare.
As it is known, the LBChain project was split into three phases, including a selection of eligible candidates, developments and testing of platform prototypes, and final testing and launching. Five companies were selected to take part in the final phase. The projects include solutions for both blockchain-based digital bank and regulatory reporting as well as the blockchain platform for the issuance of green bonds.
The shift to other industries
Since the LBChain, the sandbox for Fintech companies has been completed, the Lithuanian Bank revealed its plans to continue the project on a bigger scale.
As a representative of the Lithuanian Bank Andrius Adamonis announced, the LB plans to move further and to replace LBChain with the LTChain (Lithuanian Chain) project, which will be aimed at collaborating with other public institutions and companies from other sectors than Fintech. According to him, the future project could involve cooperation companies from healthcare, transport, or energy sectors.
Reportedly, the Lithuanian Bank plans to launch the LBChain project in the fourth quarter of the year.