R3 and four member banks test new blockchain solution

R3 and four member banks test new blockchain solution

Blockchain consortium R3 (which now describes itself as an “enterprise software firm”) and four of its member banks have created a prototype solution for issuance of euro commercial paper (ECP) on R3’s Corda distributed ledger technology (DLT) platform.

The four banks are ABN Amro, Commerzbank, ING and KBC.

The participants say the project demonstrated the ability to issue and sell ECP on a distributed ledger with the following benefits compared with existing systems and processes:

  • reduced costs of market intermediaries;
  • reduced operational risk and inefficiency via a shared consensus view of ECP transactions on a distributed ledger;
  • enhanced transparency of the ECP market for regulators;
  • comprehensive solution for issuance and settlement of a security using DLT.

The banks and R3 will continue working together “to move from experiment to possible production”. This, they say, “will involve engaging with software vendors, thought leaders in the short-term debt instrument ecosystem, as well as the regulatory community”.