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11 banks complete experiment using blockchain technology

Eleven banks successfully completed a blockchain connectivity experiment this month, the first test by a consortium of financial institutions looking into the use of distributed ledger technology, said cryptofinance firm R3CEV.

Consortium members Barclays, BMO Financial Group, Commonwealth Bank of Australia, Credit Suisse, HSBC, Natixis, Royal Bank of Scotland, Toronto-Dominion Bank, UBS, UniCredit and Wells Fargo each connected with a private peer-to-peer distributed ledger managed by R3CEV, said a news release on R3CEV's website.

The banks simulated exchanging value, represented by tokenized assets on the distributed ledger without the need for a centralized third party.

The experiment was the first in a series of tests that will involve a range of consortium participants and various distributed ledger technologies that target uses in financial markets, the news release said.

State Street was one of the consortium members that did not participate in the first experiment but will be joining in the next two tests, said Hu Liang, senior managing director, head of the emerging technologies center at State Street.

“We'd done the (connectivity testing) so many times internally. We didn't have time to join in. Just too many things we've been working on,” Mr. Liang said. “The next version of testing, which is a series of two tests, we'll be a part of.” Mr. Liang wouldn't elaborate on those tests.

Other banks in the consortium include Bank of America, BNP Paribas, Bank of New York Mellon (BK), Canadian Imperial Bank of Commerce, Citigroup, Deutsche Bank, J.P. Morgan Chase, Goldman Sachs, Macquarie Bank, Mitsubishi UFJ Financial Group, Morgan Stanley (MS), National Australia Bank, Nomura, Northern Trust, Scotiabank, Sumitomo Mitsui Banking, Royal Bank of Canada, Societe Generale, and U.S. Bancorp.