EU Banks Execute First Live Securities Transfer on R3 Blockchain Platform


Two of the large EU banks execute first live securities transfer on R3 Blockchain platform. The ING and Credit Suisse have transferred the legal ownership of German and Dutch government securities with the help of HQLAX Digital Collateral Records (DCRs).

5 March, AtoZForex Some of the EU banking giants, Swiss Credit Suisse and Dutch ING, have successfully executed the first live transfer of securities on R3 Corda Blockchain platform.

EU Banks Execute First Live Securities Transfer on R3 Blockchain Platform

According to the official press release from the Credit Suisse, the financial service groups have completed a transaction of EUR 25 million worth of securities on the R3 Blockchain platform. The ING and Credit Suisse have transferred the legal ownership of German and Dutch government securities with the help of HQLAX Digital Collateral Records (DCRs) on the HQLAX Corda-based collateral lending application.

The transfer has been carried out by reassigning the proprietary rights of HQLAX DCR-linked accounts holding “baskets of securities.” This was done instead of the traditional way of transferring the individual securities.

In addition, the press release notes that the law firm Clifford Chance has taken a part in the development of a legal framework for a DCR-based transfer of the securities’ ownership.

How can the digital ledger technology change the financial system?

The head of ING’s Wholesale Banking Innovation, Ivar Wiersma, has stated in the official press release from the bank:

“What’s really different is that gives the regulator the opportunity to get direct access to the ledger and see the entire digital history of the transaction, from where it originated to its ownership and attributes. In the over-the-counter environment, which is traditionally not that transparent, it could make the entire financial system more resilient.”

The managing director of R3, Charley Cooper has stated that the transaction was “far more than a proof of concept in a fenced lab.” He has added:

“These are regulated institutions in a real market and it is a unique demonstration that blockchain solutions are being deployed in commercial settings.”

Online reports have also pointed out that a representative from ING Blockchain initiative shared the information that the application will be fully functioning by the end of the year.

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