To develop guidelines and agreements for blockchain usage in financial aid, a financial technology company R3 CEV worked with 42 banks. R3 proclaims the completion of a trial with 40 banks tested in five different blockchains to apply trade and redeem a fixed-income product. R3 thinks a real world process in financial markets, is the biggest trial on blockchain technology. Chief executive David Rutter said, “These technologies serve as a new boundary of innovation and will enhance the way the finance industry operates in identical ways as the advent of electronic trading decades ago brought big advancements in efficiency, transparency, balance and safety”.
The company tested distributed ledgers supported by Chain, IBM, Erin Industries and Intel. All of them established technologies either as open source projects or for profit. The banks weigh in how good each technology ran smart contracts – mainframe programs that execute financial transactions that helped issue the next trade and redeem commercial paper; a form of fixed-income security corporations issue to raise short term funds. Supported by Microsoft Azure, IBM and Amazon AWS distributed ledgers were introduced on cloud computing resources. Barclays, Bank of America, BBVA, Citi, Bank of NY Mellon, State Street, Morgan Stanley, JP Morgan, Deutsche Bank, HSBC, Wells Fargo, Godlman Sachs, and other member banks contributed in the test. IBM’s VP of Blockchain, James Wallace said, “IBM Blockchain usage is a blockchain network that was developed within minutes, granting the developers to quickly focus on creating a sample of application for trading unprotected guarantee notes within hours.”
On January R3 experimented with new technologies with 11 huge banks including Credit Suisse, Barclays, Wells Fargo and HSBC. Adam Ludwin, CEO of Chain.com, said, “By undertaking initiatives such as this one, R3 is further accelerating the adoption of blockchain technology by demonstrating instead of simply asserting the commercial advantages of this emerging approach to financial services”.