In a significant announcement from UK Finance supported by EY, R3, the leader in enterprise distributed ledger technology, and Quant, a pioneer in blockchain for finance, have been appointed to develop the technology prototype for the experimentation phase of the UK’s Regulated Liability Network (RLN).
The UK RLN: A Platform for Financial Innovation
The UK RLN is set to revolutionize the financial landscape as a shared platform fostering innovation across various money forms, including current commercial bank deposits and tokenised bank deposits. This initiative aims to enable seamless payments, transactions, and settlements within digital marketplaces, meeting the demands of a digitally evolving economic environment.
Collaboration Among Major Financial Players
The UK RLN project boasts participation from leading financial institutions such as Barclays, Citi, HSBC, Lloyds Banking Group, Mastercard, NatWest, Nationwide, Santander, Standard Chartered, Virgin Money, and Visa. The collaborative effort is bolstered by support from consulting giant EY and legal expertise from Linklaters, alongside a formidable technology team comprised of R3, Quant, DXC Technology (DXC), and Coadjute.
Technological Backbone by R3 and Quant
R3 delivers its advanced shared ledger capabilities through its Corda platform, renowned for robust tokenisation and digital currency solutions. Quant complements this with its Overledger platform, which facilitates programmability and interoperability across different money forms, enriching the project's technological framework.
Testing and Use Case Exploration
The initiative will leverage the collective expertise of global banks and financial institutions to pilot numerous payment use cases in both retail and wholesale sectors. These include delivery versus payment, e-commerce, bond issuance, and cards gateway integration. The project will also feature innovative applications such as Coadjute’s Home Purchasing Business Application, showcasing a new model for property market infrastructure on R3’s Corda.
Commitment to Digital Financial Evolution
Kate Karimson, R3's Chief Commercial Officer, highlighted the project’s significance: "The RLN initiative unites the industry towards a common goal of embracing regulated, orderly, and interoperable tokenised finance." Jana Mackintosh of UK Finance noted the project's role in future-proofing the UK's financial infrastructure through rigorous testing of digital finance hypotheses.
Gilbert Verdian, CEO at Quant, remarked on the shift towards digital finance necessitated by global demands for speed, security, and scalability, underscoring the pivotal role of shared ledgers in this transition.
