R3, UK Regulator and Banks Build Blockchain Prototype for Mortgagesbr>
R3 said that it had developed a prototype of the system together with the UK FCA, the Royal Bank of Scotland (RBS), and another global bank which did not wish to be named.
The prototype was built using R3’s Corda, an open-source distributed ledger for financial technology. The prototype enables banks to generate automated delivery receipts for the regulator each time a mortgage is booked. The organizations hope that it can reduce the cost of the process and the risk of error.
The participants said they that will continue working with R3 to move towards a live pilot of the solution. This will involve engaging with other UK mortgage lenders, the academic community, and other regulatory bodies to showcase the prototype and receive feedback for shaping a production-ready version.
“We have engaged with hundreds of regulators across the world since the outset of R3,” said David Rutter, CEO of R3. “Our members are some of the most heavily regulated institutions in the world, and so streamlining and improving regulatory reporting has been a key consideration as we develop Corda. Bringing regulators and banks together in projects like this is the only way to develop effective, futureproof solutions that meet the needs of all parties involved.”
“This project has shown that distributed ledger technology, and specifically the Corda platform, can give the regulator a new tool capable of overseeing mortgage activity much more quickly and efficiently than before whilst greatly reducing data inconsistencies,” said Richard Crook, Head of Emerging Technology at RBS. “This also streamlines our business, enabling us to simplify our processes and deliver better experiences for our customers.”
The R3 blockchain consortium counts over 85 of the world’s leading financial institutions among its members. It is in the vanguard of research and development of blockchain-inspired distributed ledger technologies (DLT), aiming to build the next generation of financial services infrastructure.