The launch of the first system platform that will enable sureties to be managed in the banking and insurance sectors through DLT technology will happen in the second half of 2021 following successful pilot trials by SIA and Italy's Research Centre on Technology, Cetif.
More than 50 market participants took part in the sandbox test, with over 350 contracts managed in four months having guaranteed sums ranging from €10,000 to €1.4m
and an average amount of €275,000
The digital sureties trial also saw the involvement of digital consultancy Reply, the Bank of Italy, the Institute for the Supervision of Insurance (IVASS) and the Italian Finance Police.
According to data provided by participants, use of blockchain and DLT technology can lead to a reduction in fraud of around 30% and in operating costs from 10% to over 50%, depending on the number of transactions processed.
Based on feedback from the trial run, further technological, functional and regulatory improvement activities have been started up with the aim of making the platform fully operational and available on the market in the second half of 2021.