4 Banks Complete €100K Commercial Paper Transaction on R3's Corda
Four European banks, including Commerzbank and ING, have settled a live commercial paper transaction worth €100,000 on R3's Corda blockchain.
Four European banks – Commerzbank, ING, Natixis and Rabobank – have settled a live transaction for a short-term debt instrument on the Corda platform developed by blockchain consortium startup R3.
According to a report from FinTech Futures on Thursday, the transaction involved an issuance of a one-day maturity euro commercial paper (ECP) worth €100,000 (or $1,13,432) at a notional value.
Natixis reportedly acted as the issuer of the instrument, Rabobank as the investor and ING as both the dealer and escrow agent. Commerzbank provided tech support and regulatory guidance.
The blockchain solution is aimed at reducing operational costs and risks for banks, as well as speeding up settlement of such transactions for their clients.
“This live trade lays the foundation for dealing ECP more efficiently and cost effectively. It also marks the start of building an improved DLT platform that enables direct settlement and reduces operational risk and costs at the same time,” Marnix Bruning, ING head of money market and central bank sales, said in the article.
As far back as 2016, R3 was working to trial commercial paper trading over blockchain systems. In one trial at the time, it worked with as many as 40 banks on a trial that used smart contracts to model commercial paper transactions.
As similar project was announced in June 2017, when it built a prototype on Corda with ABN Amro, Commerzbank, ING and KBC as the participating banks at the time.
Just yesterday, R3 also launched the Corda Settler, an application aimed to facilitate global cryptocurrency payments within enterprise blockchains.
R3 image via Shutterstock
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.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.