R3 plans DLT international payments and cooperates with SIA
07 November 2017
The R3 distributed ledger technology (DLT) consortium and 22 of its member banks will launch a cross-border payments prototype by the end of the year and is also collaborating with SIA.
The SIA collaboration will revolve around the SIAchain network that will be integrated with R3’s Corda blockchain platform by Q1 2018. The idea is to offer SIA customers the ability to run DLT CordDapps applications designed specifically for financial institutions (FIs).
SIA managed 4.3 billion card transactions last year, 2.8bn payments and cleared 12.2bn transactions. It is a key technology provider in the European payments arena and will contribute 600 nodes provided to FIs, corporates and public bodies to the partnership, gaining access to R3’s DLT in return.
Commenting on the partnership in a statement Massimo Arrighetti, CEO of SIA, said: “The collaboration with the R3 consortium is a milestone in our blockchain strategy. We will integrate on SIAchain, which rests on roughly 600 nodes of the SIAnet network throughout Europe, the most advanced technologies available and will develop innovative applications.”
According to David Rutter, CEO of R3, “we designed Corda as an open source platform specifically to encourage partnerships such as this.”
- In a separate announcement R3 also said that 22 of its member banks will launch a prototype by the end of 2017 of a new cross-border payments platform using its DLT.
The new launch could eventually rival SWIFT and other DLT-based platforms from rivals like ripple, but it is still very early days in its development, with a full ‘go live’ still to be decided.
The planned new R3 Corda-based platform will allow existing Central Bank currencies to be transferred internationally and any future digital currencies. It will facilitate instant international payments, says the consortium, potentially offering domestic level speed and cost advantages that are currently lacking in the global cross-border correspondent banking network.
Participating banks include CIBC, Commerzbank, DNB, HSBC, Barclays, BBVA, Intesa, KBC, Natixis, Shinhan Bank, TD Bank and Woori Bank, among others.
According to R3 CEO Rutter, “this marks a significant milestone for DLT as we work alongside our bank members to harness its unique attributes to build the world’s first true international payments system”.
He added that he believes the solution, “will be a game-changer for any bank or company whose business relies on making or receiving cross-order payments.”