Reuters reported that R3 CEV, a New York-based company that leads a consortium of over 70 banks, has launched a new adaptation of its blockchain platform. The company hopes that the new version will help financial institutions apply the emerging technology more conveniently.
R3 stated on Tuesday that the new format of the ledger, known as Corda, has an innovative feature that will help software developers simplify the process of building apps with the technology to integrate future updates.
Richard Gendal Brown, chief technology officer of R3, commented on the new blockchain version:
"There are a number of people who are building on this or have done live transactions. What they get is certainty as they finalize their applications and move them into large-scale production that they won't have disruptions."
R3 CEV LLC develops and delivers complex blockchain systems to financial institutions and global financial markets. It was launched in 2015 and has collaborated with many reputable banks, including Goldman Sachs, BBVA, Barclays, BBVA, Credit Suisse, J.P. Morgan, and UBS among others. Its members include more than 100 investment banks, trade associations, regulators, and services.
In May 2017, R3 raised $107 million from banks, including SBI Holdings Inc, Bank of America Corp, HSBC Holdings Plc, Intel Corp, and Temasek Holdings.
Investment Banks and other markets regard blockchain technology as a method to automate some of their back-office processes like regulatory reporting and securities settlement.
Recently, Japan Exchange Group (JPX), which operates Tokyo Stock Exchange and Osaka Securities – the largest exchanges in Asia, released a report that explains the use of blockchain technology in capital markets. JPX analysts also assessed the capabilities of R3’s Corda among others.
The Blockchain is a distributed ledger that is shared among all participants in the network. While its building blocks have been around for a while, Blockchain technology gained mainstream exposure with Bitcoin and is now being considered in several other fields. The main benefit of the technology is that it represents a shared record of transactions, rather than a centralized system, monitored by a single entity or group of entities.
R3 is the largest financial consortium that deals with blockchain technology. Recently, the company announced that it had collaborated with the UK Financial Conduct Authority (FCA), the Royal Bank of Scotland, and other banks to create a Corda-powered system to help the regulatory reporting of mortgage trades.
Despite the high confidence around blockchain, there are some industry players who believe the technology is still in its nascent stage and is being hyped.