R3CEV, the digital currency startup, has been something different from the start. Founded by ex-Wall Street veteran David Rutter, it has sought to bridge the gap between traditional financial institutions and blockchain technologies. The recently announced move by nine of the world’s major financial institutions to pool resources to fund R3 shows a shift in attitude and a realization that the technology has value across the financial industry.
This move to develop standards and protocols for blockchain technology can only aid further adoption and acceptance moving forward, and increase awareness of the digital currency market as a whole.
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R3 was founded by David Rutter and Todd McDonald with the aim of establishing consistent standards and protocols for digital currency, which can then be used to develop applications to improve the modern financial market ecosystem. Thirty years of Wall Street experience has put Rutter in an excellent position to understand how the technology must do more than just grow; it also has to provide value for the existing financial system.
With a team of financial service experts and new technology specialists, along with digital currency entrepreneurs, R3 has built the foundation of knowledge that is needed to evaluate the role of digital currency within the more mainstream financial architecture. This work is focused on the areas where blockchain technology could improve current financial industry operations, as well as identifying the digital currency failings that must be addressed for this to happen.
A major step in achieving this goal has recently been announced, with nine of the world’s most recognized banking brands agreeing to pool resources to back R3 in its work. JP Morgan, Goldman Sachs, Barclays, Royal Bank of Scotland, BBVA, Credit Suisse, Commonwealth Bank of Australia, and UBS have combined to provide financial and technological support to the endeavor.
With this new support and backing, R3 plans to work in collaboration with the banks to create and test distributed ledger prototypes and protocols, with the aim of fostering broader adoption and acceptance of the technology in the future.
R3 represents a possible consensus on standards that will ultimately benefit the whole industry. Christopher Murray, global co-head of FX and rates and credit at UBS, noted that “If you’re looking to introduce applications with distributed ledger technologies to improve the financial markets, you can’t have each participant working to a different pattern.”
For digital currency as an industry, the adoption of common standards and acceptance from major financial institutions are both positive signs for the future.