Four international banks have completed a live commercial paper transaction based on blockchain consortium R3’s Corda platform.
A group of international banks in partnership with enterprise blockchain software firm R3 have completed a live commercial paper transaction based on blockchain platform Corda, Finextra reported Dec. 6.
The transaction was implemented on the Corda-based Euro Debt Solution application developed by R3, with German banking and financial services company Commerzbank, French corporate and investment bank Natixis, and Dutch financial services firm Rabobank as the participant.
In the course of transaction, Natixis reportedly issued 100,000 euro ($113,722) notional, while Rabobank acted as the incestor and ING as both dealer and escrow agent. Commerzbank developed the pilot framework, software and distributed ledger (DLT) network for the trade, and instructions on regulatory implications.
The banks have also developed a legal framework for the project in cooperation with external counsel Allen and Overy. Marnix Bruning, head of money market and central bank sales at ING reportedly said that the initiative “marks the start of building an improved DLT platform that enables direct settlement and reduces operational risk and costs at the same time.”
Launched in 2016, Corda is a decentralized platform based on the Ethereum blockchain, that is geared for use by financial institutions. Corda purportedly enables businesses to build interoperable blockchain networks that transact directly and privately.
Financial institutions around the world have been actively implementing blockchain technology into their operations. Yesterday, Cointelegraph reported that Brazil’s largest private bank partnered with United Kingdom bank Standard Chartered to create a blockchain-based platform for small loans. The two parties successfully conducted a proof-of-concept for the platform based on R3’s Corda Connect.
Also this week, Saudi Arabian developmental institution the Islamic Development Bank Group (IsDB) partnered with a Tunisian startup iFinTech Solutions to develop interbank blockchain tools. The new offerings will purportely improve Islamic financial institutions’ liquidity management and increase overall efficiency.
Source: , CoinTelegraph
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