Major Banks Send $30 Million in Securities over Blockchain-powered Platform

Credit Suisse completed the lending transaction of live securities with the Dutch bank ING.

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Two major banks reported that they have successfully sent securities worth $30 million (€25 million) using a platform powered by blockchain.

Earlier today, Credit Suisse revealed with an announcement that it has completed the lending transaction of live securities with the Dutch bank ING. It was accomplished utilizing a collateral-lending blockchain application that developed by the enterprise blockchain consortium R3 and the financial resource management company HQLAX.

Credit Suisse described that the application (that is built on Corda distributed ledger platform of R3) enables the 2 banking groups to swap legal ownership of German and Dutch government securities in a more efficient way in comparison with the traditional systems.

As reported in a previous release, HQLAX launched the blockchain application in April 2017, in an effort with R3 and 5 of its member banks, including ING and Credit Suisse.

Although the application is still at the testing phase, an ING’s blockchain initiative lead told in an interview with Reuters that the companies are expecting to see the blockchain application go live by the end of 2018.

This application seems to prove that Blockchain tech can improve the current marketplace

The head of Collateral Optimization and Rates Repo at Credit Suisse Securities, Romain Dumas commented about the trial. He said that the success of this first test (live transaction) shows the blockchain technology’s potential to improve collateral fluidity by creating a more transparent, efficient and cost-effective marketplace for liquidity transfers.

Also read: China’s Universities Are Working on Blockchain Patents

 

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