Introduction to R3 ESTELLE ROIENA MAY 2018

Transcription

1 Agenda : Registration : Introduction by Arnaud de Bresson (Paris EUROPLACE) : Introduction by Frederic Dalibard (Natixis and R3 Chairman) : Presentation R3 by Clive Cooke (R3) : French regulatory changes in Blockchain by Hubert de Vauplane (Kramer Levin Naftalis & Frankel) : Presentation Corporate KYC project by Estelle Roiena (R3) : Q&A : Closing drinks 1

2 Introduction to R3 ESTELLE ROIENA MAY

3 SECTION 01 R3

4 4 The R3 network is an alliance of the world s largest banks, insurers, regulators, exchanges, law firms, corporates, partners and financial technology providers committed to delivering the next generation of trade based on blockchain

5 Blockchain is the new operating system for business Company A Company B Company A Company B Company A Company B Action Action Action Action Action Action Perception Perception Perception Perception Shared Perception = Truth Processing Processing Processing Processing Shared Processing Logic Communication Communication Internet Shared Communication Before the Internet Now After Shared Ledger 5

6 The Truth I Know That What I See Is What You See This is what I think I am owed This is what I think I owe We both see the same thing 6 Supplier TODAY Customer Supplier TOMORROW Customer

7 Blockchain enables competing firms to: Ø Collaborate and maintain one secure database ØRun software that communicates with their counterparts and Øenables a near-instant update in their systems without relying on intermediaries, reconciliation, matching or manual fixes 7

8 DLT / Blockchain has huge potential to drive change Financial Institutions Regulators Operations Individuals These four use cases alone could generate $60-80bn in cost savings 1 KYC / AML Derivatives Clearing Repo Clearing Cross Border Payments Trade Reconciliations Margin / Collateral Real-Time Settlement KYC / AML Regulatory Reporting Compliance Reporting Trade Reporting Risk Visualization Basel III Compliance Client Transparency Client Onboarding Real-Time Settlement Common Ref Data Timestamping Account Portability Fraud Identification OTC Life-Cycles Crowdfunding Peer-to-Peer Lending Virtual Identity Credit Scoring Cross Border Payments Vault/Escrow Services Customer Deposit Cost 8 (1)Source: McKinsey 2016 Findings From Research Into Distributed Ledger Technology

9 The R3 Member Network Regulators: 20+ Regulators and Central bank members including; HKMA AMF Montreal Abu Dhabi Global Markets Partners: 90+ partners which includes system integrators & advisory, independent software vendors, Infrastructure/ technology partners and network service providers 9

10 R3 Partner Network Delivery Partners (Systems Integrators & Advisory) Partner Solutions (Independent Software Vendors) Infrastructure / Technology Partners Network Service Providers 10

11 SECTION 02 Corda

12 Meet Corda The open Blockchain platform for digital cash, assets and trade. Designed for business, built for privacy p12.

13 Blockchain-inspired: the best attributes of Bitcoin / Ethereum, but no cryptocurrency Enterprise grade: built specifically for business Data privacy: transactions shared on a need-to-know basis Consensus: achieved at individual deal level, rather than system level. Supports a variety of consensus mechanisms Regulator-focused: design directly enables regulatory/supervisor observer nodes Smart contract: strong link between legal prose and smart contract code Easy integration: reuses existing java developer skills making integration with bank systems easy and safe 13

14 Platform 1.0 October 2017 API Stability 2.0 November 2017 Observer Node 3.0 March 2018 ABI/Wire/Data/Schema stability

15 Interoperable Networks on Corda Business Networks Corda ensures cash and assets do not have to go off-chain to settle 15

16 Corda Network is a global network of Corda nodes sharing standards, frameworks, and governance Bitcoin/Ethereum Public permisionless blockchain Poor privacy, network inefficiency Fabric/Quorum Multiple Siloed Private Networks Stranded Assets Corda Public blockchain with identity Multiple private business networks Transferable assets 16 Global connectivity, business privacy, asset mobility, network efficiency

17 SECTION 03 R3 Member Services

18 Why do members join the R3 network? Because with R3 you can; Join the financial ecosystem of the future: worlds largest blockchain network with over 200 members, partners, regulators, central banks Access to 3 years of experiments some of which have matured into pre-production projects Train technologists and end-users to leverage Corda Help build and deploy the operating system for the future of finance, delivering a broader understanding of the benefits of Blockchain Introduce you to live projects that will impact your business in the short-term 18 Help you understand how Central Banks Digital Currencies and other Cash/Payments initiatives will disrupt how business is executed today

19 R3 guides customers through their Blockchain journey Learn Apply Deliver Leverage Blockchain training Scheduled project Corda Solutions Corda app store Corda training Research library Corda Connect Road-maps & Working groups R3 Professional services Delivery partners Connecting buyers and sellers Customer benefit R3 Consortium Banks, Regulators, Lawyers, Corporates, Technology Partners

20 Learn Online Education Interactive, web-based education via Lesson.ly, an online training platform Installing Corda What is a Notary? Understanding Identity Legal Prose Understanding Oracles Understanding Consensus DLT 101 The Corda Ledger Since March, we have delivered classroom Corda training to developers worldwide Corda Training Research Access Corda training for developers available both virtually and in-person Corda Certification Corda Train-the-Trainer Corda Enterprise Building a CorDapp Unlimited access to collateral Corda for Non-Programmers Corda for Attorneys Corda for Architects Corda for Regulators Extensive DLT whitepapers and research reports 60+ Private Blog Posts CBDC research papers Previous project outcomes 20

21 Apply Corda KYC Goal: Demonstrate how Corda can be used to solve business problems using a KYC CorDapp example. Method: Guided learning materials to explain the business and technical considerations required to build the CorDapp. This will culminate in a global live trial of the prototype CorDapp on Corda Network.

22 Deliver Offering guidance on building CorDapps and Corda Business Networks R3 Engagement Models Incubator Accelerator Business Case Development CorDapp Design Commercial Models Business Network Design Legal and Reg Industry Engagement R3 Delivery Framework

23 Propose your own project Syndicated Asset Ownership The Loan Exchange 23

24 Leverage: Matching Partners to Opportunities R3 work with software vendors and partners to build applications (CorDapps) that will sit on top of the Corda Network Customers Members Stakeholders ISV & Network Partners CorDapps Delivery & Infrastructure Partner Regulators Central Banks Legal 24

25 CorDapps will bring real world business solutions to our clients CorDapps are distributed top of stack applications built on Corda, made enterprise ready by our partner network. Digital Identity Insurance Cash and payments Trade finance Capital markets CORDAPPS 25 PARTNERS

26 Portfolio of projects HQLAx - Distribute liquidity more efficiently Marco Polo Open account trade finance Finastra LenderComm syndicated lending Calypso - FX settlement confirmation VoltronX Documentary trade automation LEIA II Corporate self sovereign KYC Maison Regulatory reporting for mortgage EuroDebt Debt Issuance 26

27 Project HQLA x Vision A collateral lending solution for sourcing or providing High Quality Liquid Assets (HQLA) on Corda Tokenization of baskets of securities to distribute liquidity more efficiently Objectives To build an exchange that improves HQLA upgrade/downgrades by utilizing distributed ledger technology for the tokenization of baskets of securities that allows for quick, legal transfer of HQLA and rehypothecation Benefits Improve collateral fluidity Real-time and atomic legal title transfer enabling DvD (Delivery vs. Delivery) of baskets of securities Enhance regulatory transparency of collateral chains Mitigate systemic risk 27

28 Project Marco Polo Open Account Trade Vision Project Marco Polo envisions a universal solution to facilitate all trade finance services, focusing on open account in 2018 Objectives The project is focused on deploying an open trade finance platform built on a global network powered by open APIs and Corda distributed ledger technology Benefits Enable trading parties and their financiers to dramatically cut back-office costs Eliminate operational friction Reduce fraud and compliance risk Open up new revenue streams Enable entirely new ways of managing and financing trade. Technology Provider 28

29 Project VoltronX Documentary Trade Vision Voltron will deliver a CorDapp to provide a simplified customer experience in executing letter of credit (LC) applications Objectives Support a pilot Letter of Credit transaction, utilising an electronic bill of lading Title Registry and Legal rulebook, deployed on Corda and the R3 Network. Scale the network and pilot clients throughout Benefits Simplified customer experience Greater straight through processing, reduce operational costs Interoperability across Bolero s e-bill-of-lading Title Registry Improved checks to automate manual verification of documents 29

30 Project EuroDebt ECP / EMTN / Eurobonds Vision Deliver a new application and business model for the issuance, dealing and settlement of Euro Commercial Paper on Corda. Objectives To deliver the full ECP trade lifecycle on a Distributed Ledger into production & scale across key jurisdictions. Benefits Cost saving Transparency & Ownership tracking Standardisation & automation Instant settlement 30

31 Corda is live. 31

32 Projects going into production this year 32

33 Across all industries From Healthcare to Energy 33

34 SECTION 04 Buy-Side initiative

35 R3 Buy Side Strategy DLT Business Application(s) R3 are working with incumbent and new technology partners within the Asset Management industry to bring a number of existing business lines on ledger driven by growing appetite for cost savings & efficiency including; Transfer Agency / Asset Distribution Asset Registry KYC/AML Collateral Management Post Trade Services (Confirmations, Custody, Settlement) DLT is widely recognized as being very applicable to the migration of all of the above functions onto the ledger. 35

36 DLT unlocking intermediary service lines between Asset Owner & Asset Management Investors Distributors/ Intermediaries Fund Platform Transaction Network Transfer Agency Fund Acct/ Custodian Asset Managers

37 SECTION 05 Legal Center of Excellence

38 Introducing: The R3 Legal Center of Excellence Access to R3 Research Portal Educational Modules Co-Branded Thought Leadership Pieces 12 Project Demos Monthly Insights Newsletter

39 Current members 39

40 Get in touch Clive Cooke Head of Business Development Estelle Roiena France lead s phone numbers

41 Thank you l