The financial industry has another test case for distributed ledger technology as the UK's Financial Conduct Authority, the Royal Bank of Scotland and an unnamed global bank have partnered with R3 CEV to develop a blockchain-based application aimed at reducing the possible errors in the regulatory reporting of mortgage transactions as well as its cost.
The prototype application uses R3's Corda distributed ledger architecture to deliver receipts to the British regulator every time one of the banks book a mortgage, Reuters reports.
The platform “can give the regulator a new tool capable of overseeing mortgage activity much more quickly and efficiently than before whilst greatly reducing data inconsistencies,” Richard Crook, head of emerging technology at RBS, said in a statement.
It could also reduce the amount of work required by the regulator when processing reports that are typically sent in a variety of formats, Steve Hey man, a project lead at R3, said in an interview according to Reuters.
Project participants will continue to work toward a live testing phase, which is slated to involve other lenders and regulatory bodies, according to R3 officials.