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More global banks back blockchain collaboration plan

29 September 2015  |  18047 views  |  3 light bulbs

An initiative to create a set of global standards for the use of distributed ledger technology in financial markets has picked up momentum, with another 13 major banks - including BofA, Deutsche Bank and HSBC - throwing their weight behind the plan.

Two weeks ago nine firms - Barclays, BBVA, CBA, Credit Suisse, JPMorgan, State Street, Royal Bank of Scotland and UBS - paired up with financial innovation startup company R3 to collaborate on research, experimentation, design, and engineering to help advance state-of-the-art enterprise-scale shared ledger technology.

Now Bank of America, Bank of New York Mellon, Mitsubishi UFJ Financial Group, Citi, Commerzbank, Deutsche Bank, HSBC, Morgan Stanley, National Australia Bank, Royal Bank of Canada, SEB, Societe Generale and Toronto-Dominion Bank have entered the fray.

The R3 team, led by former Icap electronic broking chief David Rutter, is made up of financial industry veterans, technologists, and new tech entrepreneurs, bringing together expertise from electronic financial markets, cryptography and digital currencies. Among the recruits are IBM's blockchain head Richard Brown.

The partners will now set up joint working groups, using a collaborative lab environment to test and validate distributed ledger prototypes and protocols as they seek to meet banking requirements for security, reliability, performance, scalability, and audit.

Niall Cameron, head, markets, Emea, HSBC, says: "Innovative, open-source developments like distributed ledger technology require expertise to deliver but have huge potential, offering banks and their clients the prospect of enhanced security, lower costs and improved error reduction."

Comments: (3)

A Finextra member
A Finextra member | 29 September, 2015, 17:39

there are so many banks working on the subject that BNP-PARIBAS and ING are not listed ;-)

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A Finextra member
A Finextra member | 29 September, 2015, 19:21

There are lot of open question in my mind, like for instance will this be linked to the current bitcoin block chain? Else, who will confirm transactions, what will be the incentive structure etc...

 

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Jim Wells
Jim Wells - Wellspring Consulting International - Fort Lauderdale | 30 September, 2015, 12:24

Wow, fresh from their being caught rigging rates for Libor & FX, US government securities prices, and prices for electric power and deceiving investors about the composition and value of near-worthless mortgage securities, many of the same Too Big To Behave Banks are now going to have a crack at crypto-currencies. You just can't make this stuff up.

 

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