Blockchain for Banking News

Largest UK banks join Regulated Liability Network trials as R3, Quant tech selected

regulated liability network digital pound

UK Finance announced that the Regulated Liability Network (RLN) has entered a new phase of experimental trials in the UK. The RLN aims to create a common ‘platform for innovation’ including tokenized deposits alongside conventional deposits using a shared ledger. All of the largest British banks are participating: Barclays, Citi, HSBC, Lloyds, NatWest, Nationwide, Santander, Standard Chartered, Virgin Money as well as card firms Mastercard and Visa. 

The RLN selected R3 and Quant as technology partners with DXC leading the system integration work. UK Finance is the project coordinator with help from EY and Linklaters. The aim is to develop a prototype to assess the benefits of the shared platform. Trials will run until summer, with a report published later exploring customer benefits and technology and legal issues. Other companies such as fintechs were invited to engage.

“This project is being run to test hypotheses about the envisaged benefits of a UK RLN as a platform-for-innovation, and will be integral to futureproofing and progressing the UK’s financial infrastructure,” said Jana Mackintosh, Managing Director, Payment Innovation and Resilience at UK Finance.

The aim is to trial three use cases. One application will reduce fraud for online purchases by making conditional payments that settle on delivery of the goods. Another will trial the payment for house transactions in association with DLT firm Coadjute. The third will involve delivery versus payment for digital bond transactions.

“Shared ledger technology has the potential to bring about 24/7, multi-asset, programmable settlement venues that can support the emerging needs of the rapidly developing digital economy,” said Tiina Lee, CEO of Citi UK.

RLN technology

On the technology front, Quant participated in the Bank of England’s Project Rosalind trials for a digital pound that used APIs for provider integration. By including Quant, it helps provide continuity with that work. Several of the banks have experience with R3’s Corda enterprise blockchain. For example, three (Lloyds, Natwest and Nationwide) have invested in Coadjute, which uses Corda. Barclays previously trialed Coadjute and other Corda-based applications such as Finteum.

Meanwhile, last year’s RLN U.S. trials used SETL and Digital Assets’ Canton.

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