Pedestrians walk past a logo of the Asian Development Bank (ADB) displayed outside its headquarters in Manila, Philippines on Sept 2, 2010. (TED ALJIBE / AFP)

MANILA - The Asian Development Bank said Wednesday that it seeks to develop ways to directly connect central banks and securities depositories in the ASEAN+3 region within a blockchain network.

According to the Manila-based bank, directly connecting the institutions within a blockchain network could reduce transaction costs and settlement risks, the possibility that securities are not exchanged within an agreed time frame

The ASEAN+3 region consists of the 10-member Association of Southeast Asian Nations plus Japan, China and South Korea.

According to the Manila-based bank, directly connecting the institutions within a blockchain network could reduce transaction costs and settlement risks, the possibility that securities are not exchanged within an agreed time frame.

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Cross-border securities transactions in the ASEAN+3 region are currently processed through a global network of custodians and correspondent banks, which go through global centers in either the United States or Europe.

"As a result, intraregional transaction settlements in ASEAN+3 take at least two days, due to time differences as well as varying operating hours for markets within the same time zone," the ADB said.

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The regional development bank said the move will be discussed with ASEAN+3 government officials and members of the Cross-Border Settlement Infrastructure Forum of the Asian Bond Markets Initiative, made up of central banks and securities depositories from across the region.