Enterprise blockchain software provider R3 made an announcement that Corda, its blockchain platform has successfully completed a live commercial paper transaction on the blockchain.
This was a collaboration project with Commerzbank, ING, Natixis and Rabobank. The live transaction was carried out on the Euro Debt Solution application which was built on Corda.
The transaction involved the issuance of a 100,000 in EURO along with a one-day maturity. Commerzbank was the one providing the pilot framework, software, distributed ledger network and guidance on regulatory implications.
Natixis acted as the issuer, Rabobank acted as the investor and ING served as both dealer and escrow agent.
Yep, as we could tell there were quite a lot of different companies involved.
This is what the CEO of R3 had to say:
“The issuance and settlement of securities is a complex process and current models are rife with inefficiency. Corda addresses these challenges by enabling parties to financial agreements to record them once and collaborate to maintain accurate, shared records of these agreements. The successful live trade on the Euro Debt Solution not only demonstrates that blockchain provides clear advantages over existing processes but marks the next step towards a production-ready solution on Corda.”
According to Youssef el Mir of Rabobank, Global Head of STIRT and Commercial Paper Trading, the transaction not only demonstrates the company’s determination to lead innovation-driven financial markets, but also taps the potential of blockchain technology to open new frontiers in settlement speed and clearing.
We hear a lot of rumors everyday about companies doing this and that with blockchain, but not many of them release results or show any type of live transactions. This will benefit customers by giving them a more efficient product experience, and will ultimately benefit the company.