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A group of large banks and other financial institutions intensifies its efforts for token the global markets for shares and bonds using Solana, the blockchain better known to host the same Donald and Melania Trump.
R3, a British software group that has developed blockchains for some of these large institutions, concluded an agreement on Thursday with the Solana Foundation that will allow it and its customers to use the Solana blockchain. The foundation, in turn, will make an undisclosed investment in R3, while its president, Lily Liu, will join the board of directors of R3.
R3 has about $ 10 billion in token workers on its networks and EUROCLEAR, HSBC, Bank of America, the Italian Central Bank and the Singapore monetary authority as customers.
This decision underlines how some of the largest banks, fundraising and exchanges in the financial sector experience token assets, such as stocks and investment funds, on digital books accessible to the public and maintained.
Supporters of the tokénisation believe that the implementation of assets on the blockchain will open more markets for investors, while accelerating settlement times, releasing guarantees and reducing administrative costs.
Blackrock director general, Larry Fink called tokenization the “next generation” for the markets. The active manager attracted $ 2.8 billion to his monetary market fund in chips since the beginning of the year, quadrupling its size, while investors pass to digital titles that pay interest.
The R3 agreement also marks a notable victory for the Solana brand while it seeks to move Ethereum as the backbone of the infrastructure of the financial market based on cryptography.
Ethereum has long presented itself as the “adult” network of the crypto industry, but had trouble working on the scale and speed required to manage exchanges and payments for titles. Solana presents itself as more widely used, faster, cheaper and better suited to large -scale use.
Although BlackRock and Franklin Templeton used Solana for token monetary market funds, blockchain is best known as the same host such as those launched by US President Trump and his wife in January.
Jens Hachmeister, head of issuing services and new digital markets with settally House Clearstream, said that his business was “excited for what awaits us”.
“The convergence of public and private blockchains is no longer a future promise-it happens now,” he said. “This is a generational change in the way the value moves.”
The agreement marks a pivot in strategy for R3, which for a decade aimed in Tokenise the titles using books which are shared between a handful of approved institutions.
The R3 Corda private blockchain will be connected directly to Solana to speed up transaction times, although users will not be required to put their assets on a public blockchain. Customers can choose to go to Solana or keep them private in Corda.
David Rutter, managing director of R3, said that the blockchain world was evolving quickly. “The regulatory backdrop has changed in a very important way and public blockchains have grown up,” he said.
The R3 British subsidiary lost 54.6 million pounds Sterling in the year until November 2023, compared to 35.2 million pounds sterling the previous year, although income increased by 57% to 12 million pounds sterling.
Liu said R3’s decision to put its regulated financial network in Solana was a powerful validation for cryptographic technology.
“Public blockchains have been built to evolve. This is where you have a global distribution for financial assets, “she said.
