Four major European banks use R3’s Corda to handle transaction on a new solution

08 Dec, 2018 | Updated: 08 Dec, 2018
by Fifi Arisandi
Adoption
Four major European banks use R3’s Corda to handle transaction on a new solution

More major European banks utilize blockchain technology, but this time, it's not Ripple's XRP, but R3's Corda platform. 

Despite the current cryptocurrency market situation, adoption of various blockchain technology seems to be going strong, particularly in the financial sector.

Four major European banks, Commerzbank, ING, Natixis and Rabobank are reported to use the Corda platform to create a live transaction on their Euro Debt Solution.

According to Banking Tech’s report, on the transaction that involved the issuance of one-day maturity Euro Commercial Paper (ECP) worth of EUR100,000 or more than $113,000, Natixis acts as the issuer, Rabobank as the investor, while ING acts as both the dealer and escrow agent.

Commerzbank, on the other hand, will be the party that provides the pilot framework, software and distributed ledger network for the transaction, while also giving guidelines on the implications of the regulatory.

The banks are looking at reducing the operational costs and risks, as well as improving the amount required to settle such transactions for their clients using the platform developed by R3.

Quoting ING’s head of money market and central bank sales, “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.”

Another blockchain technology that's currently on the rise in the banking industry is Ripple's XRP, with the latest news coming from Santander and American Express that utilize it to boost the speed for cross border transaction between the US and UK. 

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