Blockchain consortium R3 is seeking to recapture investor confidence after a spate of high profile banks withdrew their support for the project by signing on Calypso Technology to develop a capital markets post-trade blockchain application.
Calypso has become the first firm to connect with R3’s distributed ledger-based smart contract platform, Corda, to launch a multi-party trade confirmation solution.
Corda, which goes live on 30 November, is an open and inclusive smart contract platform that enables interoperability between users by allowing them to build and operate distributed ledger applications using common code and protocols, according to R3.
Counterparties will be able to see all trade tickets on the distributed ledger to ensure correct trade matching. The partnership represents the first real integration between a leading distributed ledger platform and a leading financial software vendor.
David Rutter, CEO of R3, said: “R3 is the largest collaborative consortium of its kind in financial markets, now comprising over 70 members from all corners of the industry. Calypso is the first capital markets application partner to engage with R3, which reflects the unique synergy between the two firms.”
Pascal Xatart, CEO at Calypso, added: “We are thrilled to be working with R3 and honoured to be their first application partner. The alignment between the two firms is exceptional—our deep expertise in capital markets combined with their industry-leading distributed ledger technology will allow us to develop a range of innovative applications quickly and efficiently. Our current matching solution is only the beginning.”
The partnership comes shortly after several large banking members, including founding member Goldman Sachs, left the R3 consortium in quick succession.
Goldman Sachs’s exit on 21 November was immediately followed by Morgan Stanley the following day and Santander the day after that, throwing the viability of the project into question.
Goldman Sachs was one of nine founding members of R3 in 2014.
The departures indicate a reversal of fortune for the consortium, which had previously increased its membership with the addition of Brazil's BM&FBovespa as its first exchange, along with China Merchants Bank, earlier in the year.
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