Thirteen top-tier banks, including HSBC, and Mitsubishi UFJ, have joined a consortium to figure out a framework for using blockchain technology.
Led by financial innovation company R3, the group will work together on research, experimentation, design, and engineering to help advance enterprise-scale shared ledger solutions to meet banking requirements for items such as security, reliability, performance and audit.
The other banks joining the group, led by R3 CEO David Rutter, are Deutsche Bank, Citi, Bank of America, Morgan Stanley, Commerzbank, Societe Generale, SEB, BNY Mellon, National Australia Bank, Royal Bank of Canada and Toronto-Dominion Bank.
Alongside the nine banks already in the consortium (Goldman Sachs, Barclays, BBVA, Commonwealth Bank of Australia, Credit Suisse, JPMorgan, State Street, RBS and UBS), the total is now twenty-two.
The group will work within a collaborative lab environment or "sandbox" to test and validate distributed ledger prototypes and protocols.
The project – in addition to developing commercial applications – will seek to establish consistent standards and protocols for this emerging technology across the financial industry in order to facilitate broader adoption and gain a network effect.