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R3 Seeks $200 Million In Funding

Source: bitcoin

R3

The innovation firm R3 CEV is a consortium focused on “empowering the next generation of global financial services technology.” According to the Financial News publication, the New York-based company has just announced its looking to raise $200 million USD from the some of the 42 banks involved with the group.

Also read: Talking Crix with Founder Dmitry Koval

R3 Is Looking For It’s Banking Buddies To Invest

Financial News reports that discussions are just beginning and the group’s developers led by David Rutter have already been simulating the firms proof-of-concept. Back in April, the company revealed some info on its protocol Corda which they’ve been testing for the past six months. R3’s chief technology officer Richard Gendal Brown details in a recent blog post that Corda isn’t like your typical blockchain. The work has been researched and catered to at R3’s development lab and products produced will not be owned by investors.

Distributed ledger technology has offered the world a new look at finance and can change the environment with a multitude of new technology use cases. Legacy institutions who are working with R3 include JP Morgan, Goldman Sachs, HSBC, Mitsubishi UFJ Financial Group, Morgan Stanley, National Australia Bank, Royal Bank of Canada, and more. At R3’s Collaborative Lab, Tim Grant, stated back in March:

“This is the first time many ledgers have been run in parallel by many institutions in a rigorous, scientific way,”

According to the Financial News publication, a source said that one proposed idea on the table to raise money is a ten-year stake in the company and its operations. R3’s development lab was described by David Rutter in an interview with American Banker’s Robert Barba. Rutter explained the lab is under supervision and financial institutions are allowed to participate. Rutter states:

David Rutter, R3 CEV

“It brings a technical discipline to make sure the experiments are run in a controlled fashion. We are taking a thoughtful approach to choosing our use cases in part because we are not venture-backed. We don’t have to spin up some use case and promote how we are going to make billions of dollars in a short period of time. So, build the foundation first, then have a lab where very smart people come in and test proof of concepts. From there, we pick what we build to commercialize it.”

The difference between Corda and your average blockchain is the prototype is designed with industry standards and regulatory processes in mind. There is no native currency and CTO Richard Gendal Brown has established publicly on the R3 blog the Corda protocol is “not a blockchain.” If the company raises the $200 million, it will surely help push this new framework to global institutions. As the Financial Times states the conversation of funding has just begun but the firm is looking for backing from its banking constituents. With the blockchain fervor spreading across the finance world they just might get it.

R3 Is Not the Only Firm Trying to Sell This Technology

However, the R3 consortium has lots of competitors nipping at the blockchain phenomenon. On April 6th, a successful test of blockchain technology and smart contracts were used to manage post-trade lifecycle events for credit default swaps. The test was run by blockchain-based companies Axoni, and Markit amongst some legacy institutions. The banks who backed the working group included Bank of America, Merrill Lynch, Citi, Credit Suisse, J.P. Morgan. So R3 has stiff competition in the privatized digital ledger field with the same financial institutions shopping the fintech market. Alongside these companies, there are others looking to offer enterprise blockchain solutions. Businesses like Chain, Gem, and projects such as Hyperledger are most likely also sweet talking and showcasing product to the same investors. 

What do you think about R3 CEV looking for $200 million in funding? Let us know in the comments below.


Images courtesy of R3 CEV websites and Linkedin

 

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R3 Seeks 0 Million In Funding

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Dub 18

Axoni Achieves 100% Success Rate With Blockchain-based CDS

Source: bitcoin

Bitcoinist_CDS

The correlation between blockchain technology and the financial industry is hard to overlook these days. A few weeks ago, several firms – including Axoni – tested the blockchain as a way to use smart contracts for single name credit default swaps. As it turns out, distributed ledgers are far more efficient than most financial players assumed.

Also read: CEX.io Adds Ether Trading Support to Crypto Exchange

Axoni And Others Focus on Blockchain-based CDS

Established financial players have taken a vested interest in distributed ledgers to improve their own day-to-day operations. Four of the world’s biggest institutions – Bank of America, Citi, JP Morgan, and Credit Suisse – recently partook in a trial to see if this technology would hold its own when used for North American single name credit default swaps [CDS].

The trial was made possible thanks to these four players collaborating with the DTCC, Markit, and Axoni. Especially this last name is of great interest, as they are a blockchain technology firm looking to bring the power of distributed ledgers to companies all over the world. Some people may recall Axoni is being advised by Benjamin Lawsky’s blockchain consultancy firm.

Trials of this project took place during Q1 of 2016, and a blockchain-based trade processing network was established successfully. Credit default swap transactions were the primary focus, as they are subject to various events throughout their “existence”. Moreover, CDS lend themselves well towards determining whether or not the blockchain is efficient enough to handle all of the input and output of these swaps.

Markit’s head of Processing division Brad Levy told the media:

“This collaboration in CDS illustrates how smart contracts can facilitate higher levels of automation in OTC markets. The success of this initiative reinforces our commitment to continued development of blockchain technology in CDS, other asset classes and financial industry processes more generally.”

Smart contracts played an integral role in this blockchain trial, as Markit generated the contracts from CDS trade confirmations. In return, this process allowed for creating a synchronized and distributed record on the network, containing all of the financial data associated with these financial instruments.

As one would come to expect, these Axoni smart contracts were tested thoroughly, as they included economic terms, event processing, and a way to manage permissions. The blockchain allows for unprecedented transparency, and that aspect was showcased by seeing how much information these contracts would make available to regulators in real-time.

So far, it seems as if all of these parties took a smart decision by relying on Axoni for these field trials. Even though a total of 85 different test cases were drafted and tested through blockchain technology, none of them failed. A 100% success rate is quite noteworthy, although there is no official word on whether or not there are specific plans to continue these experiments in the future.

What are your thoughts on financial players getting together with Axoni for these blockchain tests? Let us know in the comments below!

Source: Chain-Finance

Images courtesy of Axoni, Shutterstock

The post Axoni Achieves 100% Success Rate With Blockchain-based CDS appeared first on Bitcoinist.net.

Axoni Achieves 100% Success Rate With Blockchain-based CDS

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