R3, RBS and UK regulator build regtech prototype for mortgages
Built on R3’s Corda distributed ledger technology (DLT) platform
Enterprise software firm R3, the UK’s Financial Conduct Authority (FCA), RBS and another unnamed bank have built a prototype application for regulatory reporting of mortgage transactions on R3’s Corda distributed ledger technology (DLT) platform.
The application is also able to generate automated delivery receipts for the regulator when a mortgage is booked.
The application was built on Corda, which records, executes and manages institutions’ financial agreements in synchrony, with “point-to-point communication to ensure the privacy required by participants in wholesale financial markets”.
Richard Crook, head of emerging technology at RBS, says: “This project has shown that DLT, 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.”
As with every firm for every blockchain event, R3 says Corda provides a single, immutable record of mortgage transactions and brings a “significant reduction in cost”.
Project participants will continue working with R3 to move towards a live pilot of the application. R3 adds that this will involve engaging with other UK mortgage lenders, the academic community and other regulatory bodies.
You’re not my type
In a world away from prototypes, R3 and Ripple are suing each other over an options contract to purchase Ripple’s digital currency XRP.
But there is better news for R3 as it has had a busy year so far with its Corda platform. Some recent developments include teaming with Synechron to develop a know your customer (KYC) solution; R3, CGI and 11 banks unveiling a prototype of a trade finance app; working with Intel to beef up its data privacy and security; and the creation of a prototype solution for issuance of euro commercial paper (ECP).
