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R3 and four banks test Euro Commercial Paper issuance on blockchain

First Published 27th June 2017

ABN Amro, Commerzbank, ING and KBC collaborate with R3 to develop an operating model for an ECP issuance and trading marketplace on Corda distributed ledger technology platform.

David Rutter, R3

David Rutter, R3

Enterprise software firm R3 and four of its member banks have built a prototype solution for issuance of Euro Commercial Paper (ECP) on R3's Corda distributed ledger technology (DLT) platform.

Project participants ABN Amro, Commerzbank, ING and KBC collaborated with R3 to develop an operating model for an ECP issuance and trading marketplace. The model was built on R3's distributed ledger platform, Corda.

The project demonstrated the ability to issue and sell ECP on a distributed ledger with the following features:

  • Reduced costs of market intermediaries
  • Reduced operational risk and inefficiency via a shared consensus view of ECP transactions on a distributed ledger
  • Enhanced transparency of the ECP market for regulators
  • Comprehensive solution for issuance and settlement of a security using DLT

The four project participants will continue working with R3 to move from experiment to possible production. This will involve engaging with software vendors, thought leaders in the short term debt instrument ecosystem, as well as the regulatory community to showcase the prototype and receive feedback for a possible production ready platform.

David E. Rutter, CEO of R3, comments: "Collaboration in pursuit of overcoming a shared industry challenge is the ethos that R3 was built on. As we continue to develop Corda the learnings from these proof of concepts allow us to ensure the platform can be applied to a vast array of different scenarios, processes and asset classes."