Blockchain-based Fund Transfer from European Banks

Blockchain-based Fund Transfer from European Banks
Blockchain-based Fund Transfer from European Banks

Swiss-based bank Credit Suisse and Dutch-based financial services company ING have transferred funds using blockchain technology for the first time in the past days. According to a press release by Credit Suisse on March 1, 2018, the transaction was worth € 25 million.

Credit Suisse and ING made their Dutch and German government securities through the HQLAX Corda application, which is based on blockchain technology called HQLAX Digital Securities Registrations (DCRs).

According to statements made in the press release, the use of DCRs in the process of transferring securities will provide customers with quality opportunities. In the press release by Credit Suisse, the statements made about this issue are as follows:

“The use of DCRs in the process of transferring securities will help increase transparency, reduce systematic risks, eliminate the risk of incomplete transactions, and help financial institutions manage their capital more efficiently.”

Clifford Chance law firm is also included in the press statement by the Swiss-based bank. The firm developed the legal regulations of the value transfer process using the DCRs method.

The statements made by Ivar Wiersma, head of the Banking Innovation Division of Dutch-based financial institution ING, on this issue are as follows:

“With the use of digital notebook technology, regulators are given the opportunity to access the registry directly. Thus, these organizations can easily access the entire digital record of the transaction they request. This transparency is not found in the traditional system, and that is exactly what the new method does. ”

Charley Cooper, executive director of R3, a union formed around 70 companies or financial institutions from around the world, has told Reuters news agency about this issue. Cooper made the following statement in his statement:

“This successful process has proven to us how the system works. This shows that blockchain technology is being used on traditional markets. ”

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