The Bank of Lithuania invites Fintech’s into the first blockchain-based sandbox

The Bank of Lithuania (Lithuanian central bank and regulator) launches LBChain – first blockchain-based regulatory sandbox for international start-ups as well as financial and Fintech companies. LBChain is a blockchain-based sandbox which combines regulatory and technological infrastructures and allows Fintech companies to test their business solutions in a controlled environment.

The platform was developed through a pre-commercial procurement and is now opening up to international start-ups as well as financial and Fintech companies to test their solutions on the LBChain. The platform will enable Lithuanian and international Fintech companies to gain new knowledge, carry out blockchain-oriented research, test and adapt blockchain-based services and offer state-of-the-art innovations to their clients. According to representatives of the Bank of Lithuania, they strive to create a platform that would not only serve for testing products or services that are already offered on the market, but would also be used to create those that might currently exist only in a financial architect’s mind.

The LBChain project was divided into three stages. To create the LBChain platform, the Bank of Lithuania invoked last year service providers selected through a pre-commercial procurement. After the first design stage, the Bank of Lithuania has selected three service providers: Deloitte (IE), IBM (PL) and Tieto (LT). Together with selected Fintech companies they contributed to creating and testing LBChain platform prototypes and test their developed products based on Hyperleger Fabric and Corda.

After that the Bank of Lithuania has chosen IBM Polska Sp. z.o.o. and Tieto Lietuva, UAB to proceed to the next stage of its endeavour to create LBChain, a blockchain-based technological platform. Now, during the third stage, the Bank of Lithuania is inviting companies for further testing of LBChain platform solutions and will choose the most viable one of them.

Open call for everybody to use the regulatory blockchain and join the sandbox

Bank of Lithuania has launched LBChain platform development project in order to support Fintech’s aiming to introduce their blockchain based financial products into the market. The platform shall also reduce the time product development time, lower regulatory and technology risk, efforts required to develop a proof of concept/MVP and test their innovative products.

Applications are accepted by October 31, 2019. There are no restrictions of geography or use cases, and no fees. Selected Fintech’s shall get regulatory support from Bank of Lithuania, technology platform environments and support are provided by IBM and Tieto. Based on Hyperleger Fabric and Corda, LBChain offers the possibility to test a wide range of financial products and services such as KYC solution for AML compliance, cross-border payment solution, smart contract for factoring process management, payment token, mobile POS and payment card solution, crowdfunding platform and unlisted share trading platform.