EU Banks (ING, Commerzbank, Natixis And Rabobank) Complete $100,000 EUR Transaction On R3’s Corda Blockchain
Four Banks Complete Commercial Paper Transaction Of $100,000 EUR On R3’s Corda Blockchain
The Corda blockchain, developed by the R3 tech conglomerate, is getting more and more widely used. Now, four European banks (ING, Rabobank, Commerzbank and Natixis) have settled transactions using the platform.
The transactions involved the issuance of a maturity EUR commercial paper which was worth around $100,000 EUR. Natixis was the main issuer of the process and Rabobank acted as the investor. ING was set to be the escrow agent and the dealer of the transaction. Finally, Commerzbank was able to provide tech support for the transaction as well as to help with the regulatory guidance.
By using the blockchain technology, the main idea was to make the whole process easier and to greatly reduce the operational costs of the transactions at the same time that the risks were diminished.
The result was considered a success by the banks as they were able to make the process be more efficient working with the blockchain technology. Marnix Bruning, the Head of Money Market and Central Bank Sales of ING, has affirmed that this could be the foundation of making the whole process more automated and easier. According to him, this can bring some important cost-efficiency to the process and reduce risks.
About R3 And Corda
R3 was already working with a trial project for commercial paper trading back in 2016. One of the trials made by the company had as many as 40 banks on trial. At the time, the company used smart contracts to finish the transactions.
Back in 2017, another similar project was launched using the Corda technology. Commerzbank and ING also participated at the time. ABN Amro and KBC were also participating at the occasion.
Now, R3 has finally launched the Corda Settler, which is set to facilitate all kinds of crypto payment transactions across different blockchains.