R3 and Solana Partner to Bridge Corda Privacy With Public DeFi

R3 and Solana Partner to Bridge Private and Public Blockchains for Secure Institutional DeFi Access

  • R3 and Solana have formed a partnership to integrate the Corda platform with the public Solana Blockchain.
  • The alliance aims to help financial institutions connect with public blockchain users while protecting sensitive data.
  • R3’s technical solution uses a dual-ledger system to maintain privacy and leverage Solana’s decentralized network for asset settlement.
  • The integration allows for atomic settlement between private Corda assets and Solana stablecoins, supporting secure and private transactions.
  • Clients have responded positively to the solution, which offers new opportunities for institutions to explore decentralized finance.

R3, an enterprise blockchain technology company, announced a collaboration with the public blockchain network Solana in May. This partnership aims to technically connect Corda, R3’s permissioned blockchain platform, and Solana. The collaboration addresses the need for financial institutions to interact with users on public blockchains while maintaining required privacy controls.

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Private blockchains like Corda are often used by institutions to protect sensitive data. In contrast, public blockchains such as Solana provide access to stablecoins, which are widely used forms of on-chain digital cash. According to recent statements, growing interest among institutional clients pushed R3 to seek a secure way to bridge Corda’s privacy features with Solana’s public network.

“If we don’t provide this bridge to DeFi for them, it becomes a problem they have to solve for themselves,” said Richard Brown, Chief Technology and Product Officer at R3. He said that the response from Corda users has been positive because it offers them privacy while expanding their options in decentralized finance.

The integration uses a two-ledger system. The first ledger on Corda holds all private data and asset details. The second ledger, called the notary, tracks token movements with cryptographic hashes—a method that keeps the asset details hidden. The notary function is transferred to the Solana blockchain. This approach lets transactions gain Solana’s increased security and eliminates the need for institutions to run their own notary services.

“It’s why we can credibly say that we’ve retained Corda’s unique privacy design, whilst also allowing those networks to gain the security and operational benefits that come from having the transactions confirmed by the universal validators on the Solana network,” Brown explained.

With this model, transactions such as buying a Corda-based bond using a Solana stablecoin can settle at the same time on Solana. Observers on Solana see only a cryptographic hash, not the actual details of the Corda asset. Institutions can also choose to make their assets available directly on Solana, supporting new possibilities for real world asset tokenization within decentralized finance (DeFi) markets.

Feedback from R3’s clients has reportedly been “universally positive.” The integration allows clients to participate in DeFi on their own terms, while keeping their existing privacy and compliance measures. Brown concluded, “We think when customers really begin to adopt this, it’s going to be quite transformational.”

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