R3 partners with Calypso for post-trade functions on blockchain platform

Partnership follows recent departure of several founding members.

R3 and Calypso Technology have teamed up to develop post-trade solutions built on R3’s blockchain powered Corda platform.

The smart-contract platform - which will be open-sourced globally as of 30 November this year - allows third-party providers and partners to build and operate blockchain applications for interoperability.

Calypso Technology has become the first to partner with R3 to develop a multi-party trade confirmation tool, which is currently being tested with several financial institutions.

R3’s Corda platform will now allow counterparties to view trade tickets on the blockchain to ensure they are matching against the correct trade.

David Rutter, chief executive officer at R3, explained both firms are looking to “address some of the major pain points facing the global financial services industry with innovative distributed ledger-based technology.”

The partnership with Calypso Technology follows confirmation from several R3 members who decided not to renew their membership. 

Goldman Sachs, Morgan Stanley, Santander and the National Bank of Australia were among those to depart the consortium.

R3 explained in response to the confirmed departures: “As with any project of this scale and scope, we always expected the make-up of the consortium to change over time.

“Developing technology like this requires dedication and significant resources, and our diverse pool of members all have different capacities and capabilities which naturally change over time.”

R3 also highlighted the recent addition of Dutch bank ABN AMRO, Cincinnati based Fifth Third Bank, insurance provider Suncorp Group and financial services company Synchrony Financial, to the group.