R3 and 22 banks have collaborated to develop an international blockchain payment system

Fintech firm R3 has announced that it has developed a new international payment system, in collaboration with 22 leading global banks, using blockchain technology.

The payment system that was built on R3’s Corda platform aims to enable fast, efficient and cost-effective cross-border payments, using a multitude of both existing currencies issued by central banks and new and emerging digital currencies.

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Once up and running, the new alternative payment system will save businesses millions of dollars with transactions taking just minutes.

“This solution will be a game-changer for any bank or company whose business relies on making or receiving cross-order payments, and is a key part of R3’s wider strategy to leverage distributed ledger technology (DLT) for faster and more efficient execution of all types of financial transaction,” said David Rutter, CEO of R3.

A number of leading names were amongst the 22 banks that worked with R3 to develop the system, including Barclays, BBVA and HSBC.

Corda will showcase the first shared infrastructure that will facilitate the full payments workflow, with others having only used DLT for international payments in specific cases.

“International payments systems have struggled to keep pace with the explosion of global trade and the globalisation of the world’s markets,” Rutter continued. “This marks a significant milestone for distributed ledger technology as we work alongside our bank members to harness its unique attributes to build the world’s first true international payments system.”

Having been under construction for over two years, the next milestone for R3 will be the release of the prototype, something that is expected before the year’s end.