Reuters reported on Thursday that Commerzbank and multinational group Thyssenkrupp successfully used the R3 Corda blockchain platform to complete a €500,000 forex transaction. The transaction uses a blockchain to store the entire transaction as a single, invariable record. Participating companies and banks do not have to worry about the reconciliation of transactions, and this greatly reduces transaction delays and manual errors caused by the current reconciliation process.
R3 Corda Blockchain
R3’s Corda platform completed a €500,000 transfer with a EUR/PLN foreign exchange forward contract. Reuters stated that since the blockchain stores the entire transaction as a single immutable record, both the company and the German commercial bank need not worry about transaction reconciliation. This is because the confirmation of the transaction will be immediately sent to ThyssenKrupp. Future transactions in the blockchain will also be confirmed immediately, which will reduce delays and manual errors caused by the current reconciliation process.
Nikolaus, manager of the German Commercial Bank, said in a statement that when it comes to foreign exchange transactions, reconciliation is “a big problem for banks.” He went on to say:
“Important resources are dedicated to solving problems that arise during the matching process. This transaction demonstrates how the use of distributed ledgers (blockchains) can enable the transformation and digitization of processes in this area.”
Reuters reported that, despite the success of the trial, Commerzbank wanted to continue research on this technology. In particular, the “need to further develop technical, regulatory and legal requirements in order to fully realize the use of blockchain efficiency advantages.”
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