ICT Solution: ‘LBChain’ platform-service development services

The Bank of Lithuania sought to develop an innovative platform-service project for fintech companies and to promote foreign direct investments (FDI) in Lithuania. The project, code-named LBChain, was expected to attract new fintech market players and established institutions through an exceptional and flexible blockchain platform, adaptable to their needs, as well as related services for combining technologies and the market regulation know-how required to use it.
It is expected that these investments in the fintech sector will contribute to structural developments in the national economy including a higher added-value, the creation of high-paying jobs, and will ensure a return on the investments in LBChain. Whether this is the case will be monitored and evaluated.
The project funding combined public funds from the “Ikiprekybiniai pirkimai LT” national programme for pre-commercial procurement, and own-funding from the Bank of Lithuania.

The goal of the project concerned the conceptualisation of the LBChain platform-service, prototype development and testing, while the terms and conditions, support model and resources required for further operation of LBChain were to become clear by the end of the project.

The Bank of Lithuania expected all suppliers bidding to provide research and development (R&D) services for the implementation of the LBChain platform-service development project (or a particular phase of the project) to have already created their own core blockchain platform with relevant partner ecosystem tools, or were already using one based on agreement with third-party partner(s) provisioning the core blockchain platform elements. The supplier was expected to create the platform-service within the project, on top of the available core blockchain platform, and in addition to what the Bank of Lithuania – together with other stakeholders such as national investment agency Invest Lithuania – were to offer to fintech companies as target user groups.

During the project, the Bank of Lithuania was not planning to acquire any additional equipment or standard software licenses. Where justified and necessary for the project, such licenses and equipment were to be sourced by the supplier using the price for the services within the project, or at their own expense and risk.

Key technologies:

• Financial technologies
   

Also see the Toolkit Case box example – LBChain PCP
EAFIP Toolkit on Innovation Procurement - Module 2, pages 14-15

Public Procurer:  Lietuvos Bankas  (Bank of Lithuania) 

Type of innovation procurement: Pre-Commercial Procurement – PCP

Timeframe:  Feb 2018 – October 2020

Budget invested by the procurer: € 850.000,- (excl. VAT)

More information:

Tender documents:  LINK

Results call for tenders:  LINK_PCP

                                       LINK-NEWS

Background information:  LINK-PRESENTATION

Newsitem:    LINK

Newsitem 2: LINK

Project information:  https://www.lb.lt/en/lbchain

To the specific tender and the general procurement of the organisation:
best practices for innovation procurement.

Completed project and tested regulatory sandbox.

“LBChain has proved to have enormous potential. One of the most important features of this blockchain-based platform is its inclusiveness. Even in the development stages, the platform was used by 11 fintechs from 8 countries that tested more than 10 totally different financial products and services. Most of the testing was carried out remotely. Tested by financial market participants, the platform may also be applied in such fields as energy or healthcare.”
More: https://www.lb.lt/en/lbchain

Also see the Toolkit Case box example – LBChain PCP
EAFIP Toolkit on Innovation Procurement - Module 2, pages 14-15