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R3, 22 member banks develop an instant cross-border payments platform

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The international consortium of R3 companies and 22 member banks have developed a cross-border payment platform based on Corda, its distribution. registry technology software (DLT).

The newly developed DLT infrastructure aims to maintain digitized versions of fiduciary currencies on a decentralized register, transferable between participants. R3 also claims that the solution will work in the future with the digital currencies developed by the central bank.

Barclays, BBVA and HSBC are among the 22 banks to have developed the platform alongside R3. The New York-based start-up, which runs its namesake consortium, announces the solution as a "direct alternative to current systems that can take several days to make an international payment."

R3 CEO David Rutter said:

International payment systems are struggling to keep up with the explosion of world trade and the globalization of global markets … This solution is a factor of change for any bank or business whose activity is based on the creation or receipt of cross-border transactions. payments.

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ICBC, Commerzbank, DNB, Intesa, KBC, KB Kookmin Bank, KEB Hana Bank, Natixis, Shinhan Bank, TD Bank, US Bank and Woori Bank are the other banks involved in this initiative.

Corda, the effort of the private banking consortium led by R3 and composed of more than 100 global banks, became open-source last year with its code contributing to the Hyperledger project run by the Linux Foundation. R2 classifies Corda as a "blockchain-inspired" platform fueled by smart contracts that, according to General Manager Rutter, will lead to the "world's first international payments system."

R3 is also involved in the Ubin project, the effort of the central bank of Singapore to develop and issue a digital currency equivalent to the Singapore dollar. The Singapore central bank tested a Singaporean digital dollar on a private Ethereum blockchain earlier this year, an initiative that marked one of the earliest examples of a digital currency issued by a central bank.

The new R3 DLT solution, supposed to support and interact with the digital currencies of central banks, will see its prototype published before the end of 2017.

Image from Shutterstock.

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