Collaboration seeks to confirm multi-party trades in capital markets using a distributed ledger, thus avoiding a cumbersome dispute-resolution process.
Calypso Technology, a provider of IT technology for financial markets, announced they have entered a partnership with the R3 blockchain consortium.
The R3 consortium includes 70 of the world’s largest financial institutions working together to develop commercial applications that leverage the power of blockchain. According to the November 29 announcement, Calypso is the first firm to partner with R3 to develop capital markets applications on the Corda blockchain platform, a distributed ledger.
Together, the two organizations are working to develop a multi-party trade confirmation application, which is currently being tested with a select group of financial institutions.
“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. We look forward to leveraging our combined expertise to address some of the major pain points facing the global financial services industry with innovative distributed ledger-based technology,” said David Rutter, CEO of R3.
R3 says Corda will become open source across the globe on November 30. The platform will enable third-party developers and partners such as Calypso to create and manage blockchain applications using common code to ensure interoperability. Calypso Technology will be the first partner to leverage the platform, which allows financial institutions and their partners to work together in a safe and efficient ecosystem. The platform’s distributed ledger technology looks to create a consistent, auditable, and accurate record.
The application R3 and Calypso are working on uses blockchain technology to increase transparency and simplify the dispute resolution process in multi-party trades. Parties will be able to access all trade tickets to verify they match the correct trade. Calypso says this will be the first real integration between a financial software vendor and a blockchain platform provider.