Natixis, Rabobank Perform Commercial Paper Trade Over Blockchain

Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term’s entrance into the institutional trading world continued this Thursday with several banks completing a commercial paper transaction using the technology. Enterprise technology company R3, which built blockchain platform Corda, worked with Commerzbank, ING, Natixis, and Rabobank to facilitate the transaction.

The trade took place on the Euro Debt Solution application, a system built on the Corda blockchain, and follows on the heels of an equivalent demo transaction that took place in September of last year. Unlike many other blockchain networks, Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term’s for example, Corda was designed explicitly for companies. When designing it, R3 placed a heavy emphasis on privacy and an ability to make transactions and transmit contracts over it.

“The successful live trade on the Euro Debt Solution not only demonstrates that blockchain provides clear advantages over existing processes,” said David E. Rutter, CEO of R3, “but marks the next step towards a production-ready solution on Corda.”

Natixis Issuer, Rabobank Investor, and ING the dealer

In the deal that took place this Thursday, Natixis acted as issuer and Rabobank as the investor. ING was both the dealer and escrow agent. The trade saw EUR 100,000 notional being issued with a one-day maturity.

Along with R3, Commerzbank provided the pilot framework, software and distributed ledger network for the trade. The German bank also advised on the regulatory implications of the trade.

Legal firm Allen and Overy were also involved in the deal. Providing legal advice, the London-based firm developed, according to a statement released by R3, “a comprehensive legal framework” for the transaction to take place.

“The flawless execution at every stage of this transaction is extremely encouraging, Natixis will continue to work closely with R3 [and] our consortium partners to push towards a full commercial launch of the solution,” said Frédéric Dalibard, Head of Digital for Corporate & Investment Banking at Natixis. “It promises impressive advances in operational efficiency, and we are delighted to be involved in this exciting project.”