R3, the entreprise software firm, has developed alongside 22 member banks a cross-border payments platform based on its distributed ledger technology (DLT) software, Corda.
This DLT infrastructure aims to sustain digitized versions of fiat currencies on a decentralized ledger, transferable between participants, and is intended to work with central bank-developed digital currencies in the future. This solution also enhances world trade inefficiencies by facilitating and reducing the costs of international payments.
The banks that are taking part of this initiative include Barclays, BBVA, CIBC, Commerzbank, DNB, HSBC, Intesa, KBC, KB Kookmin Bank, KEB Hana Bank, Natixis, Shinhan Bank, TD Bank, US Bank and Woori Bank.
David Rutter, CEO of R3 stated: “International payments systems have struggled to keep pace with the explosion of global trade and the globalization of the world’s markets. This marks a significant milestone for distributed ledger technology as we work alongside our bank members to harness its unique attributes to build the world’s first true international payments system. This solution will be a game-changer for any bank or company whose business relies on making or receiving cross-order payments, and is a key part of R3’s wider strategy to leverage distributed ledger technology for faster and more efficient execution of all types of financial transaction”.
Corda, comprised of more than 100 global banks, is a “blockchain-inspired” platform powered by smart contracts that eliminates costly friction in business transactions while maintaining privacy and security.
The prototype of the new R3 DLT solution, aiming to interact with central bank digital currencies, is expected to be released before the end of 2017.