ING tests commercial paper issuance on Corda platform
This week, ING tested a euro commercial paper issuance on the Corda Distributed Ledger platform within R3. The test demonstrated the ability to issue and sell European commercial paper, an unsecured, short-term loan issued by a bank or corporation in the international money market, on a distributed ledger.
This method is leading to the following benefits compared with existing systems and processes:
• Reduced costs of market intermediaries
• Reduced operational risk and inefficiency via a shared consensus view of ECP transactions on a distributed ledger
• Enhanced transparency of the ECP market for regulators
• Comprehensive solution for issuance and settlement of a security using DLT.
Ivar Wiersma, head of Innovation at ING Wholesale Banking, comments: “We are thrilled that the outcome of testing the prototype was positive. It demonstrates that selling and reselling of commercial paper through on-ledger issuance provides clear advantages in terms of operational efficiency and transparency; it eliminates the need for intermediaries like central securities depositories and custodians which slow down operations, reduce transparency, and increase costs in the overall flow.”
Read the full article on Finextra.