It’s been reported that four major European banks have used R3’s Corda platform to create a live transaction for their Euro Debt Solution.
The banks, Commerzbank, ING, Natixis, and Rabobank have adapted blockchain technology, according to a new Banking Tech report, by finding a solution to minimize operational costs and risks using R3. Corda is a distributed ledger platform that is the outcome of over two years of intense research and development by R3 and 80 of the world’s largest financial institutions.
The banks combined their individual strengths to develop the solution. Natixis as the issuer, Rabobank as the investor, while ING acts as both the dealer and escrow agent. Commerzbank, on the other hand, provides the pilot framework, software and distributed ledger network for the transaction which involved the issuance of a one-day maturity Euro Commercial Paper (ECP) worth EUR100,000 or more than $113,000. ING’s head of money market and central bank sales commented:
“This live trade lays the foundation for dealing ECP more efficiently and cost-effectively. It also marks the start of building an improved DLT platform that enables direct settlement and reduces operational risk and costs at the same time.”
Ripple’s XRP has become the banking system’s go-to transaction solution in the crypto sphere, but this use of the Corda platform demonstrates that Ripple has not got a complete stranglehold on the space for such payments.
R3 leads a consortium of more than 200 financial institutions in research and development of DLT usage in the financial system and other commercial sectors. Corda was designed for dealing with complex transactions and security and is expected to have many of the benefits of the blockchain. A new version of Corda was released earlier this year aimed specifically at businesses, called Corda Enterprise, it includes a blockchain applications firewall.
However, Ripple does appear to be growing from strength to strength following the company’s recent announcement that Japanese banking corporation Mitsubishi UFJ Financial Group (MUFJ) Inc has struck a partnership with Brazilian bank Banco Bradesco for a new Ripple-based cross-border payments system.
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