Blockchain Consortium R3 Closes A Record Funding Round

Blockchain Consortium R3 Closes A Record Funding Round

Global banking consortium has reportedly closed the all-time high $107 million funding round in the history of distributed ledger technology (DLT).

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Global banking consortium has reportedly closed the all-time high $107 million funding round in the history of distributed ledger technology (DLT).

According to the online media, over 40 financial institutions participated in the funding round, including top member investors like SBI Group, Bank of America Merrill Lynch and HSBC. In addition, other major investors such as ING, Banco Bradesco, Itaú Unibanco, Natixis, Barclays, UBS and Wells Fargo joined.

“We’re ridiculously excited that this massive group of competing financial institutions could be so excited about what we’re building, to look beyond the competitive nature of the industry and the personalities that were involved, and really rally around a common theme”, said R3’s founder and CEO, David Rutter, while speaking to coindesk.com.

The funds are to be used to assist global technological development and push the Corda Enterprise to institutions around the world, as the publication explained. These major investments symbolize confidence from the banks` side. The latter seem to embrace the R3`s distributed ledger model that hopes to capitalize the benefits of the blockchain technology.

There are no further details disclosed regarding the share structure. In addition, the division of the intellectual property built atop the open-source Corda platform is also not publicly explained. Still, Rutter made clear that Corda is open-sourced, but the results of experiments carried out within the R3 lab are to be private.

“We will license a Corda Enterprise.”, according to Rutter.

“Which will come with service contracts and throughput and latency guarantees that wouldn’t otherwise be available through Corda open source.”, as he added.

Companies like Ripple and Axoni are working on internal custom solutions, whereas bringing small groups of banks for various pilots. As Rutter stated, Corda is different because it is built from the ground up. While the project has been developed for banks, R3 is not a bank and that may give participants a sense of ease, as coindesk.com speculated.

“We’ve kind of proven to a degree that we’ve never seen before that the collaborative model works very well.”, as Rutter commented in an interview with the online media.

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