Dutch financial services giant ING Bank (ING) announced this Tuesday that it has signed a five year deal with blockchain technology provider R3. According to a statement released by R3, the deal will entitle ING to an unlimited number of licenses for the blockchain provider’s commercial platform, Corda Enterprise.
The deal will also allow ING to start using Corda Enterprise throughout its various operations across the globe. On top of that, the Dutch firm will also have access to R3’s CorDapps, a set of blockchain-based pieces of technology that can be used in trade finance, identity, insurance and capital markets.
“Our longstanding joint journey with R3 has proven that this is the most mature enterprise [distributed ledger technology] solution to serve the needs of the financial service industry,” said Annerie Vreugdenhil, Head of Innovation for wholesale banking at ING. “Strengthening our partnership, by signing this licencing agreement, marks a huge milestone towards empowering clients to transition to a distributed economy.”
Old friends: ING and R3
ING has been involved with R3 for some time. In November of 2015, just two months after R3 started operations, the Dutch bank, alongside several other financial institutions, signed up to become a part of the blockchain consortium.
Earlier this year, ING became the first firm to use R3’s Corda blockchain platform to facilitate a trade finance deal using the new technology.
The transaction, which involved the shipment of soybeans from Argentina to Malaysia, involved HSBC sending a letter of credit to ING. A statement released by HSBC at the time said that R3’s technology enabled the transaction, which traditionally takes 5 to 10 days to finalise, to be completed in under 24 hours
“ING has been an enthusiastic adopter of blockchain technology and a valued long-term partner to R3,” said R3 CEO David Rutter. “For example, in trade finance, it was involved in the first live trade on Project Voltron. It was also one of the participants in the first live securities lending transaction on blockchain through HQLAx. As ING takes full advantage of access to Corda Enterprise, we look forward to seeing how the diverse CorDapp ecosystem can deliver gains in productivity, efficiency and profitability across the bank’s diverse business areas.”