Through this collaboration, R3 and Solana Foundation seek to bring one of the first enterprise-grade, permissioned consensus services delivered to the public directly on a Layer 1 network. This aims to merge the institutional TradFi and DeFi environments, unifying the reach of R3 into the TradFi ecosystem with the scale of internet capital markets. As a widely used public blockchain, the Solana blockchain facilitates increased performance, minimised fees, and a global ecosystem, being a suitable foundation for regulated digital finance.
R3 and Solana plan to offer regulated assets on a public blockchain at a time when the RWA sector is evolving, with regulations supporting investor confidence in digital assets, financial institutions becoming more inclined to utilise public networks, and the DeFi sector maturing. Based on these, the demand for tokenized and high-quality assets on public networks is also expanding. The R3 ecosystem seeks to meet these requirements and, by integrating with Solana’s blockchain, the company can allow its assets to flow and unlock additional settlement options across these landscapes, including leveraging stablecoins. Compared to traditional interoperability approaches, this integration enables private transactions on Corda to be confirmed directly on the Solana mainnet, assuming the network’s performance and security and facilitating transactional atomicity.
Furthermore, the partnership intends to develop a consensus service deployed on Solana to allow native interoperability between R3’s existing Corda platform and Solana, linking permissioned and public blockchain ecosystems. Through this, regulated financial institutions, such as banks, financial market infrastructure providers, and asset managers, are set to be able to benefit from the efficiency of Solana without re-writing their applications or compromising on compliance and security.
R3 selected Solana as its public Layer 1 substrate and the basis for its new consensus service after an evaluation and technical review of decentralised protocols, choosing the company based on its transaction fees, efficiency, scalability, and its ecosystem’s developer community and relationships with regulated financial institutions.
Additionally, the two companies plan to mitigate the complexity that comes with managing RWAs on public blockchains, providing Corda’s capabilities in identity, privacy, and compliance to a public and permissioned environment. This enables traditional financial institutions to operate with the control they expect from enterprise-grade infrastructure.
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