Calypso Technology today become the first firm to partner with R3 to develop capital markets applications on its Corda distributed ledger-based smart contract platform. The two firms have announced they are currently developing a multi-party trade confirmation solution and testing it with multiple financial institutions. This news comes at a time when R3 needs it most, after it recently lost a few of its member banks including Goldman Sachs and Morgan Stanley.

The two firms say their trade confirmation solution utilises blockchain technology to dramatically transform existing processes, substantially increasing transparency and simplifying dispute resolution. They explain that counterparties will be able to see all trade tickets on the distributed ledger so they can be sure they are matching against the correct trade.

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David Rutter, CEO of R3, commented: “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, which reflects the unique synergy between the two firms. 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.”

Pascal Xatart, CEO of Calypso, said: “We are thrilled to be working with R3 and honored to be their first application partner. The alignment between the two firms is exceptional – our deep expertise in capital markets combined with their industry-leading distributed ledger technology will allow us to develop a range of innovative applications quickly and efficiently. Our current matching solution is only the beginning.”