Blockchain technology continues to draw powerful admirers including Goldman Sachs, Barclays, BBVA, Commonwealth Bank of Australia, Credit Suisse, JPMorgan, State Street, Royal Bank of Scotland, and UBS.
World’s most powerful banks have joined hands to work on the formulation of industry standards and protocols based on the blockchain technology for their mainstream applications in the financial markets. The partnership will be led by a startup R3 which is being led by Wall Street expert David Rutter.
R3 describes itself as an innovation firm focused on building and empowering the next generation of global financial services technology.
The announcement of the partnership was made in a press release issued to the media by R3.
What puts blockchain in the spotlight is the reason that it is swifter, more transparent and easier to use than the traditional banking operations.
“This partnership signals a significant commitment by the banks to collaboratively evaluate and apply this emerging technology to the global financial system,” said Rutter. “Our bank partners recognize the promise of distributed ledger technologies and their potential to transform financial market technology platforms where standards must be secure, scalable and adaptable.”
The press release also informed that the partnership will focus on research, experimentation, design, and engineering to help advance state-of-the-art enterprise-scale shared ledger solutions to meet banking requirements for security, reliability, performance, scalability, and audit.
Earlier we had reported that Swiss Banking giant UBS is working on a project termed as the “utility settlement coin” and this project is also making use of the blockchain technology. For the said project, the work is being undertaken at a Bitcoin lab in London and the banking major wants to build an alliance around it.
While most banks have shown interest and have taken small steps towards the understanding the technology, this is the first time that the banks will be coordinating on a blockchain project.