The Gateway to Algorithmic and Automated Trading

R3 and eight banks trial Intel blockchain tech for bond trading

First Published 26th September 2016

R3, Intel and eight R3 consortium member banks successfully test distributed ledger prototype for bond transactions using Intel Sawtooth Lake technology.

New York, San Francisco, and London - The trial used US treasury bonds to demonstrate how distributed ledger technology can support trading in real-world financial markets, delivering the necessary scalability and supporting throughput of over 100,000 transactionsper day.

R3 and its consortium members built and used an implementation of Sawtooth Lake, Intel's proprietary distributed ledger platform, along with Intel's Software Guard Extensions (SGX), a technology that enables developers to protect select code and data from disclosure or modification.

The trial was carried out in R3's Lab and Research Centre. R3, Intel and each of the banks used physical, non-cloud-based nodes hosted globally across the US, Canada, Asia, Australia and Europe to interact and simulate US treasury trading on the ledger.

The platform featured advanced smart contract functionality, enabling trading, matching and settlement of US treasury bonds on-chain, as well as automated coupon payments and redemption based on network time and third party data sources. Additional features included an on-chain identity registry to facilitate the permissioning of validators and transactors, and the association of those roles to different organisations.

R3 consortium members involved in this project included CIBC, ING Bank, HSBC, Scotiabank, Societe Generale, State Street, UBS and UniCredit. Intel will be donating the bond-related transaction families (software code written to simulate the behaviour of bonds on an exchange) developed for this project to the Hyperledger Project. It will be running live demos of the platform at the Hyperledger booth (C90) at Sibos this week. R3 and Intel are premier members of the Hyperledger effort, and State Street is a general member.

  • Copyright © Automated Trader Ltd 2018 - Strategies | Compliance | Technology

click here to return to the top of the page
content