S7 Airlines and Alfa-Bank pilot the first Russian blockchain Letter of Credit transaction
Two Russian companies, S7 Airlines, and Alfa-Bank, have successfully closed a deal using a smart contract to settle and record a Letter of Credit (LoC) on a blockchain. A Deloitte in Russia provided legal support to the project.
KPMG outlines blockchain technology impacts and countermeasures for banks in China
Big Four accounting firm KPMG recently published its third quarterly report on China’s banking sector. Among a variety of topics is the implications and countermeasures for commercial banks, “under the rise of blockchain technology.”
ABN Amro launches pilot blockchain application for Commercial Real Estate
The Netherlands' third largest bank, ABN Amro, and its technology partner, IBM, recently launched a pilot to explore how blockchain technology can improve Commercial Real Estate (CRE) processes.
Chinas banking sector: Performance of listed banks and hot topics
This issue focuses on big data used to promote the transformation of banking outlets; how to build a data mart for banking credit risk from the basics; the interpretation of the implications of Circular No.42 on banking business; the discussion and analysis of the accounting treatment of the business of investment-loan linkage of banks; and the implications of blockchain technology on commercial banks and proposed countermeasures. These topics are receiving more and more attention in the banking industry, and we hope that our discussion will help our readers gain a firmer understanding. Furthermore, this issue provides an overview of the financial position and performance of listed banks in the third quarter of 2016, which will allow readers to better understand the overall performance of the sector.
Blockchain is dead, long live the Blockchain
I’ve noticed a great deal of schadenfreude related to the R3 bump. Lots of people saying that blockchain is past its sell-by date, R3 are bust and distributed ledgers are dead. I think it’s related to the journalists who, having delighted in bigging up blockchain big time for the past two years are now relishing the idea of trashing it but come on guys, blockchain is far from dead. It’s just entered the trough of disillusionment.
Shakeup at R3 CEV blockchain consortium as banks leave
R3 CEV launched with nine founding members in September 2015. Helmed by David Rutter, a former executive at interdealer broker Icap, the firm set out to develop blockchain technology for the financial services industry. Rutter put together an unmatched group of large financial institutions. At its recent peak, the consortium claimed 73 member, including many of the world’s largest banks and insurance companies.
Major Korean Bank to launch bitcoin-backed remittance service
One of Korea’s biggest financial institutions, Shinhan Bank, recently announced that they will be providing bitcoin remittance services for the Korea-China corridor starting in December. The development marks the first time that any major bank has announced a Bitcoin value transfer system.
Major banks from India and Dubai complete blockchain trade finance and remittance transactions
India’s largest private bank, ICICI, and one of the middle east’s largest banks, Emirates NBD, recently announced successful international blockchain transactions for both Trade Finance and Remittance purposes.
Banks could save billions in mortgage loan costs by adopting blockchain-based smart contracts, says Capgemini
At the end of the second quarter this year, there was $13.97 trillion mortgage debt outstanding in the U.S., according to the latest statistics from the Boards of Governors of the Federal Reserve System. Residential properties account for over 90 percent or approximately $12.6 trillion. 35 percent of outstanding mortgages were held by major financial institutions and over 36 percent by Federal and related agencies, including Fannie Mae and Freddie Mac.
Core bank systems should have built-in obsolescence
From controlled to marketplace and from internal to external focus, another key change is the very nature of technology itself. It’s quite clear that a start-up today could launch with just a few thousand dollars, Amazon Web Services and a bright idea. There is no need to build complex infrastructure and spend months with hundreds of coders creating something.
Global reserve currency – Special Drawing Rights vs Bitcoin
Earlier this month, the G20 summit was held in China. One of the more interesting topics discussed, was the addition of Chinese yuan to the International Monetary Fund Special Drawing Rights. The topic is rather important, but it doesn't seem to be discussed all that widely in the crypto community.
Major banks demonstrate how blockchain technology can improve syndicated loan market
The initial stage of a project to demonstrate how blockchain technology can be used to improve the syndicated loan market has been successfully [completed](https://www.credit-suisse.com/us/en/about-us/media/news/articles/media-releases/2016/09/en/blockchain-demonstration-shows-potential-loan-market-improvements.html). Led by Credit Suisse and managed by R3 CEV, the proof of concept will continue through the end of the year and includes participation from a number of agent banks, service providers and fund manager.
IBM and UnionPay collaborate on blockchain project for exchanging bank loyalty points
IBM China Research Lab and China UnionPay’s E-payment Research Institute recently demonstrated a collaborative blockchain project at the Shanghai International Blockchain Week. The project enables banks to integrate and share bonus point systems, while consumers will be able to exchange points from any of the banks they do business with.
Bitwage reports dramatic growth, while expanding services
Founded in 2013, bitcoin payroll and international wage payment service, Bitwage, offers fast and low-cost payroll services, distributed in fiat currencies and bitcoin. The company currently has over 6,000 registered users and has processed almost $8 million in payroll transactions.
Credit Suisse leads HSBC, Citi, and AllianceBernstein to develop blockchain solutions for financial reference data
Seven financial institutions, including Credit Suisse, Citi, and HSBC, have collaborated “to explore how blockchain technology could simplify reference data processes.” The companies are working with blockchain technology company R3 CEV and capital markets blockchain infrastructure provider, Axoni.
Traditional investment banking model ‘no longer an option,’ states McKinsey & Company ‘blockchain technology could deliver a broad range of benefits’
Global management consulting firm, McKinsey & Company, recently published a [report](http://www.mckinsey.com/industries/financial-services/our-insights/capital-markets-and-investment-banking-2016-time-for-tough-choices-and-bold-actions) outlining strategies that could help the capital markets and investment banking (CMIB) industry. “Time for Tough Choices And Bold Actions” defines the industry’s ailments and proposes initiatives that banks could implement, including the adoption of blockchain technology.
