ING Bank Settles a 5-Year Deal with R3 Corda Enterprise in a Bid to Transit Its Clients to Distributed Economy

UTC by Teuta Franjkovic · 3 min read
ING Bank Settles a 5-Year Deal with R3 Corda Enterprise in a Bid to Transit Its Clients to Distributed Economy
Photo: Fred Romero / Flickr

Dutch international bank ING has signed a deal with enterprise blockchain consortium R3 for access to R3’s commercial blockchain platform.

As a part of the five-year agreement, ING Bank is set to acquire an unlimited number of licenses for R3’s Corda Enterprise platform. The banking giant plans to implement Corda’s decentralized applications (CorDapps) across its global business infrastructure.

CorDapps is a set of blockchain-based pieces of technology that can be used in trade finance, identity, insurance and capital markets.

Annerie Vreugdenhil, Head of Innovation for wholesale banking at ING said:

“Our longstanding joint journey with R3 has proven that this is the most mature enterprise (distributed ledger technology) solution to serve the needs of the financial service industry. Strengthening our partnership, by signing this licencing agreement, marks a huge milestone towards empowering clients to transition to a distributed economy.”

David E. Rutter, CEO of R3, added:

“ING has been an enthusiastic adopter of blockchain technology and a valued long-term partner to R3. For example, in trade finance, it was involved in the first live trade on Project Voltron. It was also one of the participants in the first live securities lending transaction on blockchain through HQLAx. As ING takes full advantage of access to Corda Enterprise, we look forward to seeing how the diverse.”

The Dutch bank is also involved with commodity trade finance platform komgo. It was one of three original banks in its predecessor Easy Trade Connect. The komgo platform is based on the Quorum blockchain, the JP Morgan version of Ethereum. An ING representative currently chairs komgo, which like Voltron specializes in Letters of Credit.

In terms of technology, it’s also participating in a Hyperledger Fabric project. Last week it was announced as a founding member of a platform targeting the mining industry called Minehub. This is a similar strategy to its involvement in the VAKT post-trade blockchain for energy. It enables the bank to have input into shaping the direction and integration for trade finance.

The operation was about shipping soybeans from Argentina to Malaysia. HSBC was also involved; the German bank had to send a letter of credit to ING. Back then, the HSBC letter stated that the transaction conducted by R3 had cut short a regular financial operation that usually requires around five or even ten days to complete. With R3 and its blockchain, everything was done within just one day.

ING Goes for Blockchain

Rutter also confirmed the fact of the long-lasting collaboration between the firms and mentioned that ING was one of the first banks to make a live trade on Project Voltron.

The bank was also among the first companies that conducted lending on securities on an open ledger via HQLAx. Rutter also mentioned that R3 is giving the ING bank the green light for an unlimited number of CorDapps to see how this ecosystem can make things for the bank’s business more efficient and profitable.

We already wrote of how R3 has received support from five additional banks that joined the company’s project on developing blockchain solutions for the finance industry. ING, BNP Paribas, the Canadian Imperial Bank of Commerce, MacQuarie and Wells Fargo have signed up to the initiative, thus increasing the total number of supporters to 30 banks.

Launched in September, the project already brought in such industry players as Bank of America, Morgan Stanley, Citi, Barclays, UBS, Deutsche Bank, HSBC, J.P. Morgan, Royal Bank of Scotland and others. The participants will combine their expertise to create blockchain solutions that will meet reliability and security requirements.

Blockchain News, News
Teuta Franjkovic

Experienced creative professional focusing on financial and political analysis, editing daily newspapers and news sites, economical and political journalism, consulting, PR and Marketing. Teuta’s passion is to create new opportunities and bring people together.

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