Enterprise software firm R3 announced on Tuesday it and 22 of its member banks have developed a solution that leverages distributed ledger technology (DLT) to enable fast, efficient and cost-effective cross-border payments. R3 revealed that the Corda platform was built to facilitate the full payments workflow and works by creating a representation of fiat currencies on ledger. It is programmed to enable interaction with central bank digital currencies as they are rolled out.
According to R3, Corda is a blockchain-inspired platform that removes costly friction in business transactions by enabling institutions to transact directly using smart contracts, while ensuring the highest levels of privacy and security. It is the outcome of over two years of intense research and development by R3 and its more than 100 members. R3 also reported that the solution will improve world trade efficiencies by facilitating instant international payments. It offers a direct alternative to current systems that can take days to complete an international payment, costing businesses millions, slowing down trade, increasing settlement and fraud risks and causing a liquidity drain for banks.
Banks involved in the initiative include Barclays, BBVA, CIBC, Commerzbank, DNB, HSBC, Intesa, KBC, KB Kookmin Bank, KEB Hana Bank, Natixis, Shinhan Bank, TD Bank, U.S. Bank and Woori Bank.
R3 went on to add that Corda’s prototype will be released by the end of 2017.