CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • Fund
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$31,610.00
  • ethereum
    ETH$1,168.04
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    Home » Crypto News » R3 CEO Leverages Blockchain for Old-Fashioned Bond Market

    R3 CEO Leverages Blockchain for Old-Fashioned Bond Market

    Author: Anatol Antonovici

    Last Updated Jul 16, 2020 @ 13:02

    R3 CEO David Rutter is developing a blockchain-based bond trading ecosystem that will use the Corda infrastructure. The platform will go live in 2021.

    David Rutter, CEO of blockchain firm R3, is independently working on a platform that leverages the distributed ledger technology (DLT) for bond trading.

    Digitizing the Corporate Bond Market with Blockchain

    There is no doubt that the bond market is among the largest securities markets in the world, and yet trades are still handled over the phone. David Rutter, who founded R3, wants to modernize it by adopting blockchain technology. He started a corporate bond tech venture called LedgerEdge. The new platform will go live next year.

    At the moment, Rutter is forming his team for the venture. The top executives have already been named. Thus, David Nicol, who previously worked for IBM and R3, is the CEO. Bob Bose, who worked for NYSE Euronext, is in charge of technology. Ian Chicken, a former executive at ICAP’s BrokerTec, will manage operations.

    For Rutter, this is not the first attempt to digitize the fixed-income space. In 2015, he launched LiquidityEdge – a trading system for Treasuries. He sold it last year for $150 million. Now he can merge his experience in the blockchain space and the bond market to create a tech-driven platform that automates the bond trading process. LedgerEdge will also rely on artificial intelligence (AI) and enclave computing.

    Commenting on the matter, Rutter said:

    “We’re not trying to put a Band-Aid on an amputated leg, which is how I look at some of the previous attempts [to change how bonds trade]. We’re solving something here with previously unavailable technology.”

    He refers to blockchain, the technology that has been successfully adopted by many trading venues supporting other asset classes. Rutter founded R3 in 2014 and has built one of the largest blockchain consortiums in the world, which includes giants like NASDAQ, JPMorgan, Barclays, Credit Suisse, BBVA, Deutsche Bank, Bank of America, Citigroup, and HSBC, among others. In total, the consortium boasts over 300 companies.

    LedgerEdge to Adopt R3’s Approach

    LedgerEdge said it would use the collaborative approach employed by R3. In other words, the bond market ecosystem will include multiple entities that will collaborate to develop a functioning platform.

    Rutter said he was negotiating with banks and investors to share their bond inventories and what they want to buy or sell through LedgerEdge.

    Unsurprisingly, the blockchain part of the bond ecosystem will be provided by R3’s Corda – a DLT platform aimed at enterprises. Corda will be used to prevent data leakage from the wider market. Rutter revealed that the main target was the corporate debt that is usually traded in the first days after being issued. The technology will track the ownership record of bonds. Rutter explained:

    “The blockchain always knows where it is, and that’s part of the secret sauce.”

    Featured image courtesy of FNLondon

    Enjoy reading? Please share:
    Facebook Twitter LinkedIn Telegram
    SPECIAL OFFER (Sponsored)
    Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

    You Might Also Like:

    • IBM_bank_of_thailand_cover
      IBM and Bank of Thailand Launch World's First Government Savings Bond on Blockchain
    • Singapore
      Singapore Exchange and HSBC Come Together on a $300M Blockchain Bond Issuance
    • dorsey_cover
      Twitter's CEO Jack Dorsey: Bitcoin and Blockchain Are the Future of Twitter
    Read more on: Blockchain Blockchain Adoption

    About The Author

    Anatol Antonovici View more posts by this author

    Anatol is an experienced financial writer that turned to cryptos right before the craze of late 2017. Previously, he was into foreign exchange and stock markets, providing brokerage firms, asset managers, and other businesses with top-notch content. He is open-minded, trades for fun, and addicted to classical music. Contact Anatol: LinkedIn

  • bitcoin
    BTC$31,610.00
  • ethereum
    ETH$1,168.04
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    ADVERTISEMENT
    binance
    ADVERTISEMENT
    bitmart
    Bitcoin Editorials
    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    5 Possible Reasons For Bitcoin’s Price Surge Over $30,000

    5 Possible Reasons For Bitcoin’s Price Surge Over $30,000

    2020 Year In Review: Bitcoin’s Journey From $3800 To Nearly $30K

    2020 Year In Review: Bitcoin’s Journey From $3800 To Nearly $30K

    6 Reasons For The Ongoing Bitcoin Bull-Run Beyond $20K

    6 Reasons For The Ongoing Bitcoin Bull-Run Beyond $20K

    Is Blockchain The Answer To COVID-19 Led Misinformation and Rumor Mongering?

    Is Blockchain The Answer To COVID-19 Led Misinformation and Rumor Mongering?

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!