Global banking blockchain consortium R3 is soon launching its first pilot commercial product to the market. New York-based blockchain company R3 wo
Global banking blockchain consortium R3 is soon launching its first pilot commercial product to the market.
New York-based blockchain company R3 works in collaboration with more than 80 banks and other financial organizations to develop the technology in financial services. Founded in 2015, R3 is one of the largest banking-centric blockchain consortiums in financial markets, according to a recent report published at cryptocoinnews.com.
In May, the consortium raised $107 million in a fundraising round, known as the largest single investment in a blockchain company to date, as the online media wrote at the time. According to reports, the latest funding round will help the further development of R3`s blockchain software Corda.
Some of the investors involve UK`s HSBC, Brazil Banco Bradesco and French investment bank Natixis. The third and final stage is expected to open this year, as the article added.
According to R3`s statement released yesterday, Bangkok Bank, BBVA, BNP Paribas, HSBC, ING, Intesa Sanpaolo, Mizuho, RBS, Scotiabank, SEB and US Bank have been building and testing programs as part of the consortium. Now there is a product that is ready to be trialed, so that it could be made widely available in 2018, as Financial News (fnlondon.com) wrote in a report.
The product is reportedly aiming to simplify the trade finance process, which still relies on letters of credit. The idea is to build a shared, up-to-date database of global transactions.
“Corda is a completely open system that is going to empower entrepreneurs to be able to build Corda apps, roll them out, and actually have them be adopted because they will work with the current financial rails, in a way that is cognizant of and compliant with the regulatory regime.”, as David Rutter, CEO of R3, told cryptocoinnews.com.
In this way, banks would hopefully avoid spending tens of billions of dollars each year on writing APIs between trading and order management systems. The third party software is not a solution as it “doesn`t communicate properly”, as Rutter said in June.