American multinational financial services company, Mastercard and blockchain service provider, R3 announced via a press release on September 11 regarding the collaboration of the two organizations to develop a blockchain-backed cross border payment solution.
The release stated that Mastercard would be the network operator to process, clear, and settle all overseas payments. Post the acquisition of Transfast, Mastercard had strengthened their global reach. Through R3’s Corda ecosystem, which includes more than 300 of the world’s leading financial services firms, technology companies, central banks, regulators and trade associations, Master card looks to complement its own capabilities.
The release also highlighted that this partnership is another step for Mastercard towards Multi-rail strategy that provides customers with an unrivaled choice in how they move money. Through this partnership, the two firms involved look to deliver increasingly innovative, value adds services for customers, liquidity management and the existing absence of standardization and processes between banks and clearing systems on a domestic scale.
The two firms believe that with R3’s expertise in blockchain, and Mastercard’s existing payment systems assets, brand, and distribution, they can accomplish the aforementioned goals.
David E. Rutter, CEO of R3, said –
“We are excited to partner with Mastercard to help shape the future of the digital payments ecosystem. All institutions – large or small – rely on the ability to send and receive payments, but all too often the technology they rely upon is cumbersome and expensive. Cross-border payments can be a particular pain point.”
David further added that the blockchain, Corda was designed to meet the need for enterprise solutions such as this one. The firm is excited to support Mastercard in bringing a blockchain-enabled payments business on a global scale.
On July 10, R3 and GoldGram Pte. Ltd announced their partnership to develop a native GGC GoldGramCoin token for R3’s Corda blockchain platform. GoldGram stated that R3’s Corda was an open-source enterprise blockchain. The blockchain platform offers privacy, security, and scalability. GoldGram added that with the various features available on the platform, Corda, would enable businesses to transact directly and in privacy. GoldGram also emphasized the availability of smart contracts.