Fnality and Finteum have announced last week that they have joined forces to deliver interoperability between the Finteum application, built on R3’s Corda platform, and Fnality’s Utility Settlement Coin (USC) solution, based on Ethereum.
LeapRate reminds that Corda Network facilitates full interoperability between applications and businesses on Corda. This allows data used on one application to be shared onto another, supporting the ‘network effect’ of running multiple applications, and having multiple firms on Corda.
The interoperability will focus on intraday FX swaps between large institutions and will enable FX intraday trading without settlement risk and with instant execution.
Finteum will use Corda to create a global financial market for intraday liquidity. Funds in USC can now be reversed before an order is placed in the Central Limit Order Book.
Olaf Ransome, Chief Commercial Officer at Fnality commented:
In addition to cost savings, the availability of USC as a payment asset offers new revenue potential to FX trading desks, brokers, and trading platforms. They will be able to earn returns by lending out cash that they are not using, or by bringing more market liquidity to the future markets in intraday FX swaps.
David E. Rutter, CEO at R3, added:
The FX settlement process needs increased transparency and traceability. Corda is fit to deliver on both counts. It was built to be fully interoperable from day one, and Fnality’s USC is a perfect example of how our platform can be used in conjunction with other systems to answer crucial industry needs.
We look forward to seeing Finteum continue to create industry-leading initiatives for the financial services sector, supported by cutting-edge technology