Accenture, SAP and R3 to Collaborate on Corda Platform

Corda

Accenture, SAP and Blockchain group R3 (not to be confused with SAP R3) are building a collaboration to co-innovate a real-time gross settlement system using the latter’s Corda platform to deliver payments between banks and customers faster and more efficiently. As a matter of fact, this isn’t the first time SAP has worked with R3.

Real-time gross settlement (RTGS) systems allow real-time and one-to-one electronic fund transfers between banks. This is commonly used for high-value transactions that need immediate clearing. These transactions are usually handled by central banks.

The payment platform in development will allow integration between the classic government-issued payments and settlements and the distributed ledger technology (DLT). The prototype design will use currency tokens to ease end-to-end settlement. It will also have the flexibility to adapt and integrate new payment technologies.

The currency tokens will be used in preference to digital currencies, which will serve as standard central bank fiat currency proxy. It will also use cryptography to increase its authenticity and security.

John Velissarios, Accenture’s managing director and global blockchain technology lead, said:

“Because the current payment settlement infrastructure is highly complex and fragmented, RTGS systems that leverage DLT and cryptographically secure tokenized payments can help central banks improve efficiency and security. The RTGS prototype, designed in collaboration with SAP and R3, demonstrates the next stage of efficiency in payment systems and, ultimately, paves the way to linking to tokenized-assets, like equities, to create an increasingly integrated and seamless financial services ecosystem.”

SAP Payment Engine application was used for the prototype. It will serve as the central hub for clearing, settlement, processing, and payment initiation.

It will also integrate with R3’s Corda platform to allow RTGS system interactions to deliver seamless operability between token-based and regular payments.

Accenture’s experience in central bank clearing and settlement, as well as its blockchain capabilities, is beneficial in enabling the prototype to process peer-to-peer payments for both banks that have adopted DLT and those that have not.

Cathy Minter, R3’s chief revenue officer, said:

“As digital currencies gather momentum, the need for interoperability between conventional and token-based systems is key in meeting the promises of tokenization. Corda was designed to execute transactions seamlessly from the outset, with the highest levels of certainty and security. Through our relationship with Accenture and SAP, R3 is collaborating with two of the tech industry’s major players to provide a real-time gross settlement token-based exchange. The end result is nearly instantaneous settlements, which will reduce friction throughout the transaction chain.”

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