27 June 2017
Visit cib.db.com

R3 shakeout continues as Santander bows out

22 November 2016  |  15159 views  |  0 Group of arrows with one odd pointing other direction

More departures expected as inevitable streamlining follows over-heating of blockchain consortia space.

As first reported by Reuters, Santander has become the latest member of the R3 blockchain consortium to abandon the project, its departure coming hard on the heels of that of Goldman Sachs and the revelation that R3 has reduced its fundraising goal by $50 million to $150 million. Reuters also reports that Morgan Stanley and National Australia Bank will no longer be participating.

R3 is playing down the significance of these developments, as reported by Finextra, saying they reflect the natural ‘change over time’ of its diverse membership’s capacities and capabilities.

Given the number of blockchain consortia and joint investment initiatives that have sprung up during the past two years – and their overlapping memberships – a shakeout has indeed seemed inevitable, with in particular bigger players likely to rationalise their involvement as blockchain moves closer to being a viable solution for mainstream market adoption.

In its extensive research into market adoption of blockchain during 2016, Finextra has reflected on the importance of collaboration in the early stages of the technology’s development. As one participant in the research said: “Collaboration is key. One bank can’t do everything by themselves – and they do recognise that.” Put another way, “there is only so much fun you can have on your own with distributed ledger technology”, said a second. Collaboration is not always straightforward however, he added, saying other parties “need to be up the maturity curve with you to make collaboration worthwhile”.

In other words, there are obvious challenges in achieving collaboration between firms of different sizes, ambitions and financial means – especially around a technology that promises cost savings and efficiency gains on the scale of blockchain.

Download Finextra’s latest blockchain research paper: From Hype to Reality

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Goldman Sachs leaves R3

Goldman Sachs leaves R3

21 November 2016  |  8372 views  |  0 comments | 9 tweets | 9 linkedin
Norton Rose Fulbright addresses the legal implications of smart contracts

Norton Rose Fulbright addresses the legal implications of smart contracts

21 November 2016  |  9227 views  |  0 comments | 10 tweets | 9 linkedin
Singapore and international banks to construct interbank blockchain network

Singapore and international banks to construct interbank blockchain network

16 November 2016  |  8782 views  |  0 comments | 13 tweets | 21 linkedin
Global banks and R3 test DLT for KYC services

Global banks and R3 test DLT for KYC services

10 November 2016  |  8769 views  |  0 comments | 22 tweets | 22 linkedin
R3 partners Singapore's MAS for blockchain lab

R3 partners Singapore's MAS for blockchain lab

09 November 2016  |  7012 views  |  0 comments | 5 tweets | 7 linkedin
Synchrony Financial joins R3

Synchrony Financial joins R3

24 October 2016  |  5692 views  |  0 comments | 5 tweets | 5 linkedin
Banks test Ripple digital asset for cross-border payments

Banks test Ripple digital asset for cross-border payments

20 October 2016  |  7982 views  |  0 comments | 10 tweets | 10 linkedin
Time has come to extract value from blockchain investment – new Finextra paper

Time has come to extract value from blockchain investment – new Finextra paper

20 September 2016  |  9344 views  |  0 comments | 24 tweets | 16 linkedin

Related blogs

Create a blog about this story (membership required)
visit wavestone-advisors.co.ukdownload the report nowvisit www.response.ncr.com

Top topics

Most viewed Most shared
Live: EBAday 2017, day twoLive: EBAday 2017, day two
10901 views comments | 4 tweets | 5 linkedin
ECB preps eurozone-wide instant payments serviceECB preps eurozone-wide instant payments s...
8652 views comments | 19 tweets | 33 linkedin
hands typing furiouslyArtificial Intelligence- Computer to IOT
8000 views 0 | 4 tweets | 2 linkedin
ABN Amro tests wearable tech for contactless paymentsABN Amro tests wearable tech for contactle...
7810 views comments | 9 tweets | 6 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job