Following on from our previous blockchain story, 9 of the worlds biggest banks including Goldman Sachs and Barclays have joined forces with tech firm R3 to create a blockchain to be used in the markets.
R3 CEO David Rutter, formerly CEO of electronic trading at ICAP Electronic Trading told Reuters “We held several roundtables…to deeply consider what the possible implications of the blockchain were, and what it could possibly do to save money, and time, and to create a better paradigm for the world of Wall Street and finance.”
The banks that have joined so far are JP Morgan, State Street, UBS, Royal Bank of Scotland, Credit Suisse, BBVA and Commonwealth Bank of Australia.
“I think that these technologies will probably be post-trade,” he said. “I think savings are in the settlement side, in post-trade, in issuance, but not in exchange trading or OTC trading any time in the near future.” He added that R3 will soon announce a few more banks joining the project.
“These new technologies could transform how financial transactions are recorded, reconciled and reported – all with additional security, lower error rates and significant cost reductions,” said Hu Liang, Senior Vice President and head of Emerging Technologies at State Street, in a statement.