The Dutch banking group ING has partnered with R3 to take advantage of its Corda platform.
According to a press release shared with Distributed, ING “has agreed [to] a five-year deal with R3 for an unlimited number of Corda Enterprise licenses,” with the intent to “encourage adoption of CorDapps across [a] wide range of business functions.”
R3’s Corda Enterprise, which the company calls a “commercial blockchain platform,” has been in development for some time, previously showcasing some success with its apps. It may more appropriately be called a “permissioned blockchain,” as it appears some of the values of truly decentralized blockchains have been scaled back in order to provide a more enterprise-focused take on a distributed ledger.
CorDapps appear to be decentralized applications built on top of Corda.
“R3 is one of the best-known blockchain companies in the industry,” Charley Cooper, R3’s managing director of business development and marketing, told Distributed in a previous interview. “Corda is not a ‘traditional’ blockchain platform and was never designed to be one. It was designed from the ground up for businesses operating in often complex and highly regulated markets, using the appropriate elements of traditional blockchain technology for enterprise usage and fine-tuning where necessary to address critical challenges such as privacy, identity and scalability.”
The deal is thought to be a mutually beneficial one, as ING will gain access to more specialized tools across its business operations, while these same operations provide R3 new footholds to more widespread adoption. This partnership is set to last five years.
Annerie Vreugdenhil, head of innovation for wholesale banking at ING, said, “Our longstanding joint journey with R3 has proven that this is the most mature enterprise DLT [distributed ledger technology] solution to serve the needs of the financial service industry,” according to the press release. “Strengthening our partnership, by signing this licencing agreement, marks a huge milestone towards empowering clients to transition to a distributed economy.”
“ING has been an enthusiastic adopter of blockchain technology and a valued long-term partner to R3,” said David Rutter, R3’s CEO. “We look forward to seeing how the diverse CorDapp ecosystem can deliver gains in productivity, efficiency and profitability across the bank’s diverse business areas.” Hopefully, this partnership will provide a great deal of potential use cases for blockchain technology in the burgeoning financial tech sector.