London
24 May 2017
Reporter: Stephanie Palmer

R3 raises record funds for DLT development


The R3 group has raised $107 million in two tranches of fundraising, securing the largest ever investment in distributed ledger technology (DLT) to date.

The first and second tranches of R3’s Series A round of fundraising was open only to R3 members, and attracted investment from 40 of the group’s institutions.

A third and final fundraising tranche, due for later this year, will be open to both member and non-member institutional investors.

According to R3, the funds will be used to further the development of DLT, and to expand strategic partnerships for product deployment. The development will focus on Corda, R3’s DLT platform for regulated financial institutions.

The funds will also be put towards R3’s infrastructure, supporting partner-built applications designed to interoperate with existing networks and systems.

R3’s 80-strong member base includes banks, clearing houses, asset managers, trade associations, technology firms, professional services firms, and more

Member that contributed to the fundraising included the likes of Bank of America Merrill Lynch, BNY Mellon, Northern Trust, BNP Paribas and Deutsche Bank.

The record investment marks a return to form for R3, following the exit of founding member Goldman Sachs in November last year, followed closely by Morgan Stanley and Santander.

David Rutter, CEO of R3, commented: “This investment is unprecedented. Many of the world’s largest financial firms have come together not just with capital support, but with a robust commitment to work with R3 in developing industry solutions that will be the building blocks of the new financial services infrastructure. We’ve got unparalleled momentum.”

“R3 has proven the collaborative model can successfully drive innovation in financial services to a degree never before seen,” he added.

“In the space of less than two years, we have built a network of over 80 members, launched an open-source distributed ledger platform specifically for wholesale financial markets, conducted over 60 detailed use cases across a variety of asset classes, led the way in regulatory engagement on behalf of the broader DLT community and are ahead of schedule for initial commercial deployments this year. We are on our way to becoming a new operating system for financial services.”

More Industry news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
BNY Mellon sees asset servicing fees growth
18 January 2018 | New York | Reporter: Zsuzsa Szabo
BNY Mellon’s asset servicing fees increased 6 percent year-over-year
Societe Generale Securities Services and OFI Asset Management have executed the first transactions via the IZNES platform on the Paris market
BBH to provide fund services for DSBI
17 January 2018 | Hong Kong | Reporter: Jenna Lomax
Brown Brothers Harriman & Co will provide custody and fund administration services to Daiwa SB Investments’ (DSBI) first Hong-Kong domiciled fund, the Japan high dividend stocks fund
Murex’s MX.3 goes live at Nationwide
17 January 2018 | London | Reporter: Jenna Lomax
Murex's MX.3 front-to-back risk platform has gone live for Nationwide Building Society's treasury business
Torstone Technology enters Norwegian market
17 January 2018 | London | Reporter: Becky Butcher
Torstone Technology has entered into the Norwegian market by connecting its Inferno platform to Verdipapirsentralen ASA, Norway’s central securities Depository
Tadawul initiates new measures for market efficiency
16 January 2018 | Riyadh | Reporter: Jenna Lomax
The Saudi Stock Exchange Tadawul has implemented new measures in an effort to raise market efficiency, boost investor access, security and liquidity
SWIFT and CSDs join forces on proxy voting DLT
15 January 2018 | Brussels | Reporter: Jenna Lomax
SWIFT and seven CSDs have partnered to explore how distributed ledger technology could be implemented in proxy voting and for digital assets
More Industry news