R3 to involve non-banks in distributed ledger plans in 2016
R3, the bank-led consortium developing the use of distributed ledger technology in financial services, has added 12 new banks as it looks at how to extend its activities to work with buy-side and non-bank institutions in the New Year.
Launched in September, R3 now has 42 global banks as members and no more can join under its rules so it “will now focus efforts on broader engagement with a diverse range of institutions outside of the banking industry [and] is considering options for participation by various categories of non-bank institutions” from the start of 2016.
“Partnering with a broad range of institutions has always been central to our strategy of developing distributed ledger technologies that will truly benefit the financial services industry as a whole,” said David Rutter, chief executive of R3. “Securing the backing of 42 of the world’s leading banks demonstrates the level of interest in our initiative, and we now look forward to exploring collaboration with non-bank institutions and expanding our already diverse group.”
BMO Financial Group, Danske Bank, Intesa Sanpaolo, Natixis, Nomura, Northern Trust, OP Financial Group, Banco Santander, Scotiabank, Sumitomo Mitsui Banking Corporation, U.S. Bancorp and Westpac Banking Corporation are the most recent banks to.
“R3 has long believed that distributed ledger technology has the potential to impact the financial services sector the way the internet changed media and entertainment,” said Rutter. “That’s a big statement, but there is increasing evidence to support it. When you look across the industry, the possible applications of these innovative solutions cut across asset classes, geographies and market participants. Ultimately, these technologies will benefit not just financial services firms, but their clients and end-users as well. We’re very excited to be at the epicentre of this global evolution.”