One of India’s major commercial banks Federal Bank is building a new cross-border remittance application anchored on Corda, a blockchain platform developed by consortium firm R3.
R3 (R3CEV LLC) is a distributed database technology firm backed by over 200 banks and financial institutions, including HSBC, RBS, Merrill Lynch, Temasek, and Bank of America.
R3’s Corda is a free open source project launched in November 2016 and is available with an Apache 2 license.
In partnership with Bangalore-based blockchain startup DigiLedge, Federal Bank is developing its remittance application on top of Corda, in an effort to provide a more efficient and inexpensive means of processing remittances.
As it stands, Digiledge has developed a cross-border remittance platform anchored on the CORDA DLT platform, to help boost the efficiency of operational and international money transfer of banks and money exchange houses by leveraging on distributed ledger technology.
As Digiledge CEO Mahesh Govind touted, Corda provides the benefits of “confidentiality and privacy of business transactions.”
As explained in a recent statement issued by the Federal Bank:
“We at Federal Bank have been practicing the philosophy of ‘Digital at the fore and human at the core’ for all our operations. When it comes to serving our [non-resident Indian] clientele, we employ the best of class technology to make them feel closer to home. This platform translates into safer, faster and cheaper foreign remittances to India.”
According to World Bank data, India has so far received a total of $69 billion in remittances, a lucrative market which the Federal Bank is aiming to corner.