Ivno, a London-based firm creating tokens of highly rated collateral for use as a fast, secure and liquid unit of transferable value, has announced the successful completion of its first token transfer trial on R3’s Corda, hosted on Microsoft Azure.
The Ivno trial was a world first with 28 participating organizations creating $18 billion denominated trial tokens and transferred them in the Ivno network demonstrating how Invo’s collateral tokens could be used for instant settlement, collateral management, and effective cash transfer.
In a live demonstration of the Ivno Corda application trial, collateral tokens were moved instantly between nodes deployed by Raiffeisen Bank International, Natixis, and a large UK bank.
“The size, scale, and success of the Ivno global trial validated Ivno’s technology and financial design and confirmed the desire and demand for live deployment. We welcome engagement with future customers of Ivno’s live service due Q1 2020.”
– Daniel Halstead, Co-founder at Ivno
The existing financial plumbing and post-trade processes are well recognized to be slow, inefficient, costly and outdated. Ivno’s approach of providing a universal and scalable solution is designed to reduce costs, remove inefficiencies and create new business opportunities across the financial landscape.
DLT has been estimated to potentially reduce bank infrastructure costs by US$15-20 billion by 2022, and Ivno will be able to help achieve these savings, in addition to enabling cost savings across asset managers, exchanges, clearers, and corporates.
Members of the trial were able to test Ivno’s core application in three use cases:
- Instant Settlement – Ivno’s users were able to conduct a live atomic swap of simulated ETF tokens in exchange for Ivno Collateral Tokens. Atomic swaps are a highly anticipated area of DLT and smart contracts as they promise users the ability to exchange tokens of value directly with other entities within a single, final transaction, without the need for an intermediary. This advancement of technology removes the possibility of failure of one side of the trade.
- Real-Time Collateral Mobility – Collateral tokens will enable corporates, banks, buyside, and brokers to instantly transfer high-quality assets between subsidiaries/branches, enabling balance sheet optimization and enhanced intra-day liquidity.
- Instant Effective Cash Transfer – Large treasury functions can save significant cost and complexity by mobilizing large value balance transfers between subsidiaries instantaneously without incurring the existing complexity and cost of transfer.
“The number and caliber of participants we have seen take part in the Ivno token CorDapp trial is a testament to blockchain’s growing use cases. The Ivno Settlement CorDapp answers industry needs – the need for instantaneous collateral movement and settlement. Ivno’s vision of real-time, instant value transfer aligns with R3’s own objectives and we are looking forward to seeing more banks realize the benefits of Corda, in our trials and beyond.”
– David E. Rutter, CEO at R3
28 organizations participated in the trial including: CIB, Cobalt, DBS Bank, Gateway DLT, Itaú Unibanco, National Bank of Canada, Natixis, Raiffeisen Bank International, SBI R3 Japan, and U.S. Bank.
Ivno predicts that collateral tokens will create profound shifts in the transfer of value, giving institutions opportunities for whole new ways to serve their customers and end-users. This is confirmed with 100% of trial feedback respondents stating that, “asset-backed tokens, and natively issued asset tokens have the potential to reshape the landscape of financial services.”