Blockchain firm receives A$143 million from 40 banks
(24 May 2017 – Australia) Two major Australian banks are part of a global consortium of 40 lenders, that have committed A$143 million into R3, a New York based technology firm developing distributed ledger/blockchain platforms that will help financial institutions reduce operational costs, and increase speed and efficiency.
Commonwealth Bank of Australia (CBA) and Westpac are among 40 global banks, including America Merrill Lynch, HSBC, Barclays, ING, UBS, Credit Suisse, RBS, Royal Bank of Canada and Wells Fargo to have invested into the capital raising.
This latest injection of funds is reported to be the largest for a fintech firm specialising in blockchain technology.
R3 says the funds will assist it in fast-tracking development of its platform, known as Corda.
CBA is testing Corda to streamline fund services, and is examining applications for procurement and billing processes and managing digital identity. Westpac is interested in the technology for cross border payments, trade finance and post-trade processing of FX.
Westpac Institutional Bank CEO Lyn Cobley said Westpac is working with R3 to "develop the building blocks of the new financial services infrastructure" and creating standards around business processes "will improve the way we operate between banks, making the system more efficient and our customers' lives easier".
CBA's head of emerging technology Dilan Rajasingham said: "developing proof-of-concepts with other interested global banks is a way to ensure we learn and develop the relevant protocols and standards."
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