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The blockchain software provider Enterprise R3 has issued a statement announcing that its blockchain platform has successfully completed a commercial paper transaction.
In collaboration with Commerzbank, ING, Natixis and Rabobank, the transaction was carried out on the Euro Debt Solution application that was built on Corda. The transaction is a continuation of a similar transaction simulated on an earlier version of the application in September 2017.
Since launching in 2017, the declared objective of the Corda consortium has been to take advantage of blockchain technology to offer broadcasting benefits. According to the R3 declaration, the intention is to achieve this "by offering a simplified capacity to access debt and at the same time increasing market transparency". The intention is that the participating institutions will have reduced operational and risk costs as well as the ability to deliver intraday regulation purposes for their clients.
Positive reactions
The transaction involved the issue of a notional amount of € 100,000 with a one-day maturity, with Commerzbank providing the pilot framework, the software, the distributed ledger network and the guidelines on regulatory implications. Natixis acted as an issuer, Rabobank acted as an investor, and ING was both a retailer and an escrow agent.
Commenting on the success of the live transaction, R3 CEO David E. Rutter said:
"Securities issuance and settlement is a complex process and current models are full of inefficiency, and Rope addresses these challenges by allowing parties to financial agreements to register them once and work together to maintain accurate and shared recordings of these agreements. success of real-time trading on the Euro Debt Solution not only shows that blockchain offers clear advantages over existing processes, but marks the next step towards a ready-to-production solution on Rope. "
Other project partners expressed satisfaction with the success of Corda, including Marnix Bruning, head of the money market and sales at the ING central bank, who stated that the company is eager to continue the collaboration in the next phase of the project. Head of Digital for Corporate and Investment Banking at Natixis, Frederic Dalibard expressed enthusiasm for a full commercial launch of the solution with the resulting positive implications for operational efficiency.
According to Youssef el Mir of Rabobank, Global Head of STIRT and Commercial Paper Trading, the pilot trade not only demonstrates the determination of the company to drive innovation-oriented financial markets, but also draws on the potential of blockchain technology to open new frontiers in the speed of settlement and clearing. That said, it will benefit customers by providing them with a more efficient product experience and ultimately will benefit the company.
Shutterstock foreground image.
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