Last month enterprise blockchain firm R3 announced an alliance with Solana involving a technical integration between Corda and the permissionless blockchain. The partnership addresses a growing challenge for traditional financial institutions: how to access the hundreds of thousands of users on public blockchains while maintaining the privacy their regulated businesses require.
While privacy enhancing technologies for permissionless blockchains are a work in progress, to date the path for institutions to achieve their needs was to use private permissioned blockchains such as Corda. There’s also a lack of on-chain cash, which is readily available in the form of stablecoins on public networks. The recent change in US administration has unleashed some of these constraints, with JP Morgan’s announcement to deploy its JPMD deposit token on a permissionless chain serving as prime evidence of this shift.
The demand from Corda’s institutional clients to engage with public blockchains is already there. “If we don’t provide this bridge to DeFi for them, it becomes a problem they have to solve for themselves,” said R3’s Chief Technology and Product Officer Richard Brown, explaining why Corda users have responded positively to the partnership.
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