Commerzbank Conducts €500k FX Transaction Using R3's Corda

Thyssenkrupp successfully conducted a foreign exchange transaction using R3's Corda blockchain in partnership with Germany's Commerzebank.

May 24, 2018 at 3:20 p.m. UTC
Updated Sep 13, 2021 at 7:58 a.m. UTC

Germany's Commerzbank and multinational conglomerate Thyssenkrupp successfully conducted a foreign exchange transaction on a blockchain platform, Reuters reported Thursday.

Thyssenkrupp transferred 500,000 euros using R3's Corda platform through a EUR/PLN FX Forward deal, or a contract locking in an exchange rate between the euro and the Polish zloty at some point in the future. Because the blockchain used will store the entire transaction as a single immutable record, neither the corporation nor Commerzbank need to worry about transaction reconciliation, the news organization said.

That is because confirmation of the deal was sent immediately to Thyssenkrupp, according to the report. Future deals conducted on a blockchain will similarly be confirmed immediately, which will cut down on both delays and manual errors caused by the current reconciliation process.

Commerzbank manager Nikolaus Giesbert said in a statement that reconciliation is "a major issue for banks" when it comes to foreign exchange trading. He continued:

"Significant resources are dedicated to resolving the issues that occur during the matching process. This deal demonstrates how the use of distributed ledger (blockchain) can transform and digitalise the processes in this space."

Despite the trial's success, Commerzbank wants to continue studying the technology, according to Reuters. In particular, the "technical, regulatory and legal requirements need to be further developed" in order to fully realize the "efficiency benefits of using blockchain."

Commerzbank image via Cineberg / Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
First Mover Asia: Crypto Carbon Trading Is Racing to Clean Up Its Act; Cryptos Drop Even as Stocks Rise

Carbon credit protocols have had a difficult time in recent months but have been working to improve the way they operate; bitcoin outperformed other major cryptocurrencies in Thursday trading.

Carbon credit protocols have had a difficult time in recent months but have been working to improve the way they operate; bitcoin outperformed other major cryptocurrencies in Thursday trading.

CoinDesk - Unknown
2
CoinDesk - Unknown
Terra Devs Need a Home. Other Blockchains Are Courting Them

Armed with multimillion-dollar ecosystem funds, chains like Polygon and Kadena are trying to woo coders whose work is endangered by Terra’s meltdown.

Armed with multimillion-dollar ecosystem funds, chains like Polygon and Kadena are trying to woo coders whose work is endangered by Terra’s meltdown.

CoinDesk - Unknown
3
CoinDesk - Unknown
Circle Recommends Against a Digital Dollar, and Ethereum Beacon Chain Suffers Longest ‘Reorg’ in Years

The most valuable crypto stories for Thursday, May 26, 2022.

The most valuable crypto stories for Thursday, May 26, 2022.

CoinDesk - Unknown
4
CoinDesk - Unknown
Huobi Acquires Latin American Crypto Exchange Bitex

The Chinese crypto exchange is seeking to expand in Latin America, but Bitex will continue to operate under the same name and with its current management team.

The Chinese crypto exchange is seeking to expand in Latin America, but Bitex will continue to operate under the same name and with its current management team.

CoinDesk - Unknown