Walters Kluwers provides software solutions for tax and accounting firms. One of its solutions is CCH Validate, which uses blockchain. A critical step in any audit process is to verify bank balances shown in the accounts. Auditors can’t rely on paper-based statements or pdfs because they are too prone to fraud. So, they have to get confirmation directly from the bank.
Hence, it makes sense to use blockchain. Not only is it possible for auditors to cryptographically verify the data from a bank, but it’s also possible to be reasonably sure it hasn’t been tampered with. Walters Kluwer claims its process is patented. We thought this workflow needed to use blockchain for years, so we can’t comment on the patent’s novelty.
However, another set of functionalities should use a similar process. Many stablecoins and tokenization projects involve assets being held by a custodian. Daily or weekly, one could query the custodian balances cryptographically, using blockchain to ensure there’s no tampering.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
