R3 blockchain Corda is adopted for inter-bank payments in Italy

David E. Rutter, CEO of R3, a blockchain development company affiliated with SBI Holdings, appeared on a financial program at CNBC in the United States. He stated that: “Hundreds of millions of transactions will be processed on Corda”.

Munetoshi Yamada, SBI R3 Japan Business Development Manager, said about a platform:

The application of the Corda blockchain has been prepared by Project Spunta in Italy. “Project Spunta” is a project aimed at eliminating mismatches in banking settlements.

Since December 2017, the project has been in operation for more than two years and is promoted by Italian JBA, called ABI (Italian Banking Association), and designed and developed by NTT DATA.

Each bank in Italy handles transactions in its own format and business flow and manages the ledger, as there is no centralized system like Zengin-Net in Japan. Moreover, communication between banks is mainly through telephone and e-mail. Therefore, inconsistencies in the content of transactions between banks are inevitable, and therefore, the settlement takes time.

Such an issue is a “perfect” use case for Corda, developed for centralized management and ledgers maintained separately by different entities.

Through this initiative, we will standardize formats, processes and rules, and perform automated matching of transactions.

It is expected to be manufactured from March 2020 and has completed 200 million test transactions, equivalent to the value of transactions in a year.

Apply the mechanism to Japan

Because Japan and Italy differ in the maturation of existing legacy systems, it cannot be said that this mechanism can be applied to Japan.

However, the nature is included in this use case, which is an isolated ledger situation between individually managed companies, not limited to financial and nonfinancial,
But popular in various industries. At the field level, they also recognize the problem.

Mr. Yamada further confirmed that the blockchain is capable of solving problems. In this regard, in Italy, ABI, a banking federation, is leading the field of banking and trying to achieve its goals on a long journey. Similarly, in Japan, it is necessary to set up a corporation led by the government and national industry associations and solve problems that cannot be solved by private companies from a common point of view.

R3 Completes Trade Finance Blockchain Trial With More Than 70 Organizations

R3 has closed what it calls the largest open-account trade finance trial ever conducted on its Corda platform.

This test includes more than 70 organizations from more than 25 countries. Upwards of 340 participants from those organizations joined and exited from industries such as financial services, information technology, telecommunications, logistics, the maritime industry, real estate, hospitality and the automotive industry.

The trial tested working capital applications developed by TradeIX and focused on financial products receivable on Marco Polo’s platform. A financial account, also known as a factoring account, is where a business sells accounts receivable to a third party at a discounted price in exchange for immediate cash payment.

The purpose of the product is to increase connectivity and efficiency while reducing onboard costs. Marc Polo stated that more than 700 sponsorship requests were completed in the trial with user training only requiring an average of one day’s time of participants.

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