R3 and its Corda platform have been selected to provide services for the European DLT [distributed ledger technology] pilot regime. Corda is the first DLT to be approved by ESMA [the European Securities and Markets Authority]
The DLT Pilot Regime opened up applications in the EU on March 23, 2023. The pilot aims to provide a legal framework for trading and settlement of transactions in crypto-assets that qualify as financial instruments under MiFID II, while facilitating the set-up of new types of market infrastructures. While MiCA [markets in crypto assets] provided rules for digital assets not deemed to be securities, ESMA is working on a framework to enable digital securities.
The DLT Pilot is expected to run for at least three years, with the European Commission potentially extending the project.
R3 offers a permissed blockchain ecosystem that seeks to support enterprise-level transactions -at speed and at minimum cost.
Corda is an open, permissioned DLT platform supporting tokenized assets and currencies. Corda is said to provide the control, security and privacy, asset mobility in a trusted environment.
CSD Prague, the Central Securities Depository of the Czech Republic, will use R3’s Corda as part of its efforts under the European DLT Pilot Regime.
For CSD Prague, the focus is on enhancing local projects such as Czech securities and bonds.
Kate Karimson, Chief Commercial Officer at R3, said the European DLT Pilot Regime is a critical milestone for the digital asset community:
“We are excited to work with them to deliver solutions that will shape future financial markets and their regulation. R3 is delighted to support the development of new market infrastructures in Europe, and this partnership is a testament to Corda’s capabilities as the most used DLT platform in production and for regulated institutions.”
CSD Prague CEO Ondřej Dusílek said that Corda’s interoperability is very promising.
“As we look towards the future, this interoperability will be important for expanding our offerings and connecting with a broader range of financial systems while remaining compliant with EU standards.”
It was recently reported that R3 may be up for sale or is looking for additional funding.
