Partner says move should help clients “enjoy greater efficiency and security over guarantees”
Piper Alderman has announced that it has become the first firm in Australia to execute a blockchain-based payment guarantee in a commercial contract.
The firm executed the guarantee using fintech firm Lygon’s blockchain platform. The platform is backed by the country’s Big Four banks – National Bank of Australia, Commonwealth Bank, Westpac, and ANZ – as well as IBM and Scentre Group.
“The transformative nature of distributed ledger technology is only just beginning, and I’m thrilled to be a small part of helping to modernise and improve legal practice,” said Michael Bacina, partner at Piper Alderman. “Paper-based payment guarantees have always suffered from inefficiency and risk and the Lygon platform, with the support of major banks and IBM blockchain technology, should help Piper Alderman and our client’s enjoy greater efficiency and security over guarantees.”
For his part, Justin Amos, chief executive officer of Lygon, said that Piper Alderman’s use of its platform was a “watershed moment” for the legal services industry, offering “major advantages for a profession heavily reliant on paper-based guarantees.”
“Over the last few months, Lygon has rapidly expanded its reach and services to other sectors in Australia to meet the demand for our platform,” said Amos. “Today, in partnership with Piper Alderman, we have executed the first payment guarantee to be used commercially in the legal services industry, and it is also the first time blockchain has been used commercially by this industry too. The rollout of a payment guarantee with Piper Alderman demonstrates how applicable Lygon’s core technology is – and it’s exciting to think that we have only just begun exploring how widely it can be used by the legal services profession.”