Financial innovation firm R3 has added China Merchants Bank (CMB) to its blockchain partnership designed to apply DLT across global financial markets.
Shenzhen-based CMB will collaborate with other over 60 other institutions to develop DLT applications with a particular focus on uses within the Chinese market.
Part of the initiative will focus on the development of Corda, R3’s shared ledger platform designed to encompass the benefits of DLT systems without the various aspects that have led may to believe that the technology is inappropriate for many banking scenarios.
“The power of this technology lies in its potential to join institutions across borders and create an efficient and effective infrastructure that is appropriate for today’s increasingly globalised financial markets,” said David Rutter, CEO of R3.
The acquisition of CMB is the latest in an industry wide debate about the potential of DLT
A recent study by the World Federation of Exchanges revealed that 84% of market infrastructure providers are looking at whether DLT could be applied to their business.
In addition BNY Mellon and Deutsche Bank recently joined the Utility Settlement Coin (USC) initiative, designed to facilitate payment and settlement for institutional markets using blockchain technology.