Nine global investment banks back blockchain initiative

On September 15, nine major investment banks, including JPMorgan Chase and Goldman Sachs, have cooperated with distributed ledger startup R3CEV.

The partnership will see collaboration formed between the institutions and work will include developing standards for the use of blockchain technology in the wider financial industry.

The banking group also includes Credit Suisse, State Street, UBS, Commonwealth Bank of Australia, BBVA, Barclays and Royal Bank of Scotland. Several banks on the list have previously announced independent research into blockchain technology.

Additionally, the banks will reportedly invest in R3.

The banks will form a working group with R3, which has spent months working with the Wall Street financial institutions on blockchain technology, including hosting industry roundtables and assisting the banks’ internal investigations.

Speaking about the collaboration, R3 President David Rutter said:

“This collaboration marks a significant commitment by banks to collaborate in assessing the role of blockchain technology in the global financial system. Our banking partners have recognised the promise of distributed ledger technologies and their potential to transform financial market technology platforms, where standards must be secure, scalable and adaptable.”

Representatives from the bank said that this cooperation will help the unified development of blockchain technology to promote more comprehensive work.

Kevin Hanley, Design Director at Royal Bank of Scotland, said:

“Right now, what you’re seeing is a lot of money and time being spent exploring these new technologies because of a lack of strategy and so on. R3’s model is changing the game.”

According to a representative, the banks’ participation reflects the growing interest of large financial institutions in blockchain technology.

"These new technologies can transform how financial transactions are recorded, reconciled and reported, and they can also add additional security, reduce errors and costs," said Liang Hu, senior vice president and head of emerging technologies at State Street.

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