The regulator will work within R3’s collaborative initiative to design and implement distributed ledger technologies (DLT) to wholesale financial markets. Particularly, the group will focus on Corda, a DLT platform for recording, managing and synchronising financial agreements.
CEO of R3 David Rutter said: “Regulators that foster and encourage adoption of innovative financial technology in its early stages play a crucial role in creating a safer, more efficient financial system for all participants.”
He continued: “We have actively engaged with regulators, trade associations and government entities across the world since R3’s inception, and look forward to working with the State of Illinois to explore how distributed ledger technology can benefit banks and other businesses in the state.”
Bryan Schneider, secretary of IDFPR, commented: “As Illinois’s financial regulator, we are committed to embracing the potential that DLTs bring to our financial institutions. Its potential to dramatically lower transactional costs, automate manual processes, and reduce opportunities for fraud and risk are truly promising.”
He added: “Through our collaboration with R3, we look to provide the support necessary to ensure the commercial and social viability of this emerging technology.”
As part of R3, the IDFPR will collaborate with over 80 financial institutions to advance commercial applications for the financial services industry, using elements of DLT.