R3 Picks XRP for Newly Launched Corda Settler, Succeeds in Euro Debt Market Trial

This has been a busy week for R3, as it launched its Corda Settler, announced a joint venture with SBI Holdings, and completed several trials in the debt market.

New York-based blockchain provider R3 announced on Wednesday the launch of Corda Settler – an application designed to enable payment obligations raised on the Corda blockchain platform to be executed through any existing payment solution, either blockchain-based or traditional. So far, Ripple’s XRP is the first cryptocurrency available with the universal settler. Thus, R3 and Ripple make a concrete step towards cooperating for blockchain adoptions at the global level.  

 As an open source Corda decentralized application (CorDapp), Corda Settler enables users to settle the payment obligations raised on Corda through any traditional or cryptocurrency-based payment rail. The CorDapp will check whether the beneficiary’s account was credited accordingly, after which the Corda blockchain will update automatically.

R3 CTO Richard Gendal Brown commented:

“The deployment of the Corda Settler and its support for XRP as the first settlement mechanism is an important step in showing how the powerful ecosystems cultivated by two of the of the world’s most influential crypto and blockchain communities can work together.”

“While the Settler will be open to all forms of crypto and traditional assets, this demonstration with XRP is the next logical step in showing how widespread acceptance and use of digital assets to transfer value and make payments can be achieved,” he added.

The XRP price didn’t react on the news, as it is heavily pressed by the general bearish trend led by Bitcoin.

It seems that Corda Settler came into being after SBI Holdings in Japan recommended that R3 develop a project that involves Ripple’s XRP. It’s worth mentioning that SBI Holdings itself is part of the RippleNet.

On Wednesday, Nikkei reported that SBI Holdings and R3 would create a joint venture in January 2019.

R3 CEO David Rutter noted:

“Europe is the most advanced in blockchain product development. The new joint venture will strengthen the Japanese language service, and promote adoption.”

Corda Trialed in the Euro Debt Market

In a separate development, R3’s Corda blockchain platform has been tested in the Euro Debt Market and syndicated loan sector via parallel trials carried out with a group of international banks.

In New York, US, and Sao Paulo, Brazil, Corda was used by Itaú Unibanco, which borrowed $100 million via a Club Loan from Wells Fargo and Standard Chartered. The technology allowed the parties to track loan agreement revisions, comments, and approvals and audit the term changes.

Germana Cruz, Standard Chartered’s head of financial institutions, commented:

“The blockchain platform has the potential to bring significant operational, financial and technological gains to all parties concerned. The PoC demonstrated its potential to reduce costs and gains in efficiency in the process of negotiation of the agreement and at other stages of the traditional transactions involving a Club Loan.”

Elsewhere, R3 has been partnering with ING, Commerzbank, Natixis, and Rabobank. The collective of banks recently completed a live commercial paper transaction by implementing a new Corda-powered Euro Debt Solution app. During the trial, Natixis acted as the issuer, Rabobank was the investor while ING was the dealer and escrow agent. Commerzbank offered its blockchain software solutions for the trade and advised the parties on regulatory consequences. Under the trade process, there was issued 100,000 euro notional with one-day maturity.

Marnix Bruning, ING’s head of money market and central bank sales, stated:

“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. At ING we look forward to our continued collaboration in taking this solution to the next phase.”

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