A transfer of 25 million euros in securities using blockchain succeeds

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The HQLAx Company has allowed the Credit Suisse and ING Suisse banking institutions to exchange securities worth of 25 million Euros with the help of a blockchain-based technology. This company’s service is one among the many applications hosted on the Corda platform, which is owned by the R3 startup.

An historic transaction was conducted

The more expensive securities, actions or other financial products are, the more complex and costly it is to send them from a financial institution to another. HQLAx is a company that aims to make it easier for such transactions to be conducted. It publicly proved itself by providing the lending application that successfully permitted to transfer millions of euros in securities from one financial institution to another on a live pilot test, using what is called DCR or Digital Collateral Records.

A transfer of the securities themselves wasn’t necessary, and only the proprietary rights were sent with the help of accounts in which the securities were stored. The ownership were thus transferred by the means of a DCR-based process, which is a premiere for a transaction of this kind between two financial institutions. DCRs are acclaimed because thanks to them, every information related to the related transaction is made easily available for everyone that needs it for verification purposes.

https://www.youtube.com/watch?v=jRQpNvG1a1s

Introduction to the Corda platform

Corda is platform powered by a network of computers like the blockchain is, and it can store information whose veracity is verified by the nodes of the aforementioned network. It initially can store data related to transactions, but later, it has been possible to use it as a backbone for several applications that are useful in the financial world. The principle is that every application has to be compatible with the previous ones, so it would end up as a complementary and very useful ecosystem.

Such technology is the initiative of the R3 startup, whose main activities are revolving around the world of FinTech since its creation in 2014. Many great names in the financial industry were seduced by the Corda projects, as well as companies such as Microsoft. At the moment, Corda is one of R3’s biggest achievements, as many finance professionals are putting their hopes in the hand of this platform.

https://www.youtube.com/watch?v=YfcJDCXWJNM

The success of the first transaction is just a beginning

HQLAx is convinced that there’s a need that awaits be fulfilled in the financial world when it comes to large scale transactions, as those seriously need solutions that could help to simplify them. The actual head of ING, Ivar Wiersma, claimed to appreciate the possibility to access every essential data related to the transactions made with the help of DCR. It’s not always the case with the actual method, and that may lead to several kind of issues.

Guido Stroemer, CEO of HQLAx, perceives the success of that transaction as a “significant step” toward the advancement of blockchain-inspired technology in the world of finance. For now, R3’s Corda and its various CordApps are on the front line in the battle against old fashioned money and assets transfer methods.

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