Credit Suisse, the leading Swiss-based financial services company, and ING, the Dutch-based global financial institution, has successfully executed the first blockchain live securities transaction for around 25 million euros (equivalent to $30 million). The transaction was carried out on R3’s Corda Blockchain. It is considered a first of its kind.
The two companies carried out the transaction to transfer legal ownership of German and Dutch government securities. It took place on the HQLAX Cord-based collateral lending application with HQLAX Digital Collateral Records (DCRs).
The event has far-reaching effects. It can help regulatory boards monitor future transactions directly and create a more transparent securities market. It also will decrease operational risks. Financial institutes will be able to better manage their capital in the future. The success of this large-scale transaction proves that blockchain can scale to resolve real-world problems. By the end of 2018, ING hopes to go live with the application.
Last year, R3 has also launched its distributed ledger technology (DLT) product Corda on the Amazon Web Services (AWS) platform. Besides ING, R3 is working closely with BNP and Commerzbank. Major banks are partnering with R3 to start a trading platform. The distributed database company has also started a Legal Center of Excellence (LCoE) to improve worldwide legal education around blockchain technologies.
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