Accenture Partners with R3 and SAP to Improve Settlement Systems by Using Blockchain
Consultancy firm Accenture has partnered with blockchain technology firm R3 and multinational software firm SAP to produce a prototype that uses distributed ledger technology to allow real-time gross settlements.
Consultancy firm Accenture has partnered with blockchain technology firm R3, and software giant SAP to produce a prototype that uses distributed ledger technology to allow real-time gross settlements.
John Velissarios, managing director and global blockchain technology lead at Accenture, mentioned that the need for the platform stems from the current “highly complex and fragmented” payment settlement infrastructure. He believes that with real-time gross settlement (RTGS) systems, blockchain would be able to allow central banks to be more efficient.
RTGS systems allow electronic fund transfers between banks to happen in real-time and on a one-to-one basis, enabling immediate clearing for high-value transactions usually handled by central banks.
The prototype utilizes the SAP Payment Engine application, which allows for payment initiation, processing, clearing, and settlement while integrating with the R3 Corda platform to enable collaboration with the RTGS systems. With Accenture’s expertise in central bank clearing and settlement as well as blockchain experience, the prototype will allow peer-to-peer payments between banks.
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 tokenized-assets, like equities, to create an increasingly integrated and seamless financial services ecosystem.”
Stablecoins will be used in the prototype, as they are less volatile than regular cryptocurrencies. The companies are aiming to work alongside the traditional financial system rather than against it, which has led to many controversies Facebook’s Libra has been dealing with.
Cathy Minter, Chief Revenue Officer at R3, stated that there is a need for interoperability between the traditional financial services industry and token-based systems.
She added: “Corda was designed to execute transactions seamlessly from the outset, with the highest levels of certainty and security. Through our 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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