Blockchain Consortium R3 Secures $5M USD Investment From Forex Firm CLS

Blockchain, Investing | May 31, 2018 By:

Forex settlement provider CLS has invested $5 million in enterprise blockchain startup R3.

Based in New York, CLS provides settlement services to its members in the foreign exchange market. It operates a global multi-currency cash settlement system through which settlement risk can be mitigated with finality. Its settlement members include more than 60 of the world’s largest financial institutions such as JPMorgan Chase and Citigroup.

As part of the invesment, CLS will take a seat on R3’s board of directors. The company will also work with other members of the R3 consortium to explore how it can provide “transformative blockchain-based solutions.”

“CLS is critically important to the functioning of one of the most important markets in the world,” R3 CEO David Rutter said. “It is absolutely right that major infrastructure players like this look to technologies such as blockchain to continue making their products and services faster, easier, safer and more cost-effective for the end user.”

The investment comes as part of the third tranche of R3’s fundraising efforts, which also includes contributions from Singapore real estate firm OUE and Japanese IT services provider TIS. OUE and TIS also invested $5 million each in R3. The first two tranches were conducted last year, when R3 raised $107 million from notable firms including SBI Group, Bank of America Merrill Lynch and HSBC.

Founded in 2015, R3 is leading a blockchain consortium of over 200 member organizations including banks, financial institutions, regulators, trade associations, professional services firms, and technology companies. It has built a blockchain platform called Corda, which is being trialed by the consortium members.