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R3 teams up with ADB to augment cross-border payments across Asia

Tuesday 8 February 2022 14:11 CET | News

US-based provider of enterprise technology R3 has partnered with Asia Development Bank (ADB) to make cross-border transaction in APAC more efficient and secure through blockchain.

The project is a proof-of-concept (POC) for a cross-border multi-currency securities settlement system based on distributed ledger technology (DLT) in Asia Pacific. The collaboration is set to facilitate discussions in the Cross-Border Settlement Infrastructure Forum (CSIF) of the Asian Bond Markets Initiative (ABMI). ABMI comprises central banks and central securities depositories (CSDs) from across the Association of Southeast Asian Nations (ASEAN) and the Republic of China, Japan, and the Republic of Korea, collectively known as ASEAN+3.

Cross-border securities transactions in the ASEAN+3 region are currently processed through a global network of custodians and correspondent banks, which go through global centres in either the United States or Europe. As a result, intraregional transaction settlements in ASEAN+3 take at least 2 days, due to time differences as well as varying operating hours for markets within the same time zone.

Directly connecting the institutions within a blockchain network could reduce both transaction costs and settlement risks, including the possibility that securities are not exchanged within an agreed time frame. Alongside other leading blockchain companies, R3 will support ADB as it seeks to develop ways to directly connect central banks and CSDs in the ASEAN+3 region within a blockchain network.


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Keywords: R3, partnership, cross-border payments, blockchain, central bank
Categories: Payments & Commerce
Companies:
Countries: Asia
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Payments & Commerce






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