The provider of foreign exchange settlement and processing, CLS, has decided to invest $5 mln in a blockchain consortium found in the New York called R3.It is a deal that will see CLS get a place in the R3’s Board of Directors.

The state of affairs

It was sometime back that the financial technology innovator announced that it had completed two of three tranches in its Series A fundraising round. It generated 107 million in total which was indeed a good turn.

Reports indicate that in the third tranche it was able to obtain financing from Japanese IT services provider TIS and OUE which happens to be a real estate firm in Singapore. R3’s chief executive officer, David Rutter has shared his enthusiasm after several major infrastructure players resorted to employing blockchain technology in the overall improvement of their wide range of products.

The passage of time is witnessing more and more of such major infrastructure players take advantage of blockchain to continue making their products more cost effective to the large number of users. It was way back in 2015 that R3 was unveiled and afterwards it was able to come up with Corda which was a type of distributed ledger technology.

Major developments

Initially, it received support from about nine mega investment banks and since then its membership has been growing steadily. At the moment it has been able to get the number to 80.

The chief strategy and development officer at CLS, Alan Marquard while addressing journalists disclosed that as a company they were hoping to work with the various interested members. The common objective would be to explore a number of ways in which CLS could succeed in the provision of transformative blockchain-based solutions.

It was in March that the Dutch-based ING financial service and the Swiss-based Credit Suisse made the pronouncement that they had completed the first live transaction of €25 mln. In February, R3 Blockchain consortium established the Legal Center of Excellence that was made up of about ten law firms. It was about providing proper training to lawyers so that they would gain an in-depth understanding as to how the new blockchain technologies operate.

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