Nordea is the latest bank to sign up to the Distributed Ledger Group (DLG) international partnership.
A total of 25 international banks have now joined the partnership, which aims to develop common standards and applications for using distributed ledger technology as the next generation financial services transaction network.
The member banks are collaborating in the DLG partnership with the company R3, whose team comprises financial industry veterans, technologists and new tech entrepreneurs.
A distributed ledger, like blockchain, is a technology that shares information between all parties on a network. Transactions are verified and recorded in the ledger through a process of consensus, which makes the transactions encrypted, incorruptible and much faster.
Nordea says that the technology has the potential to completely transform the financial industry and can be applied in transactions such as foreign exchange (FX) trading, payments, issuance of securities, regulatory reporting and compliance.
The idea of the DLG partnership is to explore distributed ledger technology, with the aim of developing commercial applications as well as establishing standards and protocols for the global financial services industry.
“We constantly strive to improve our customers’ experience with us, and as the largest bank in the Nordics it is natural for us to join an international partnership to explore new ways of banking,” said Erik Zingmark, deputy head of Nordea Transaction Products and member of the DLG steering committee.
“New technology drives a fundamental change of consumer and corporate behaviour and demands. We want to build the best digital experiences for our customers, and we are right now investing heavily in new IT systems and promising new technology in order to be competitive in the new banking landscape.”
In addition to Nordea, the other global banks to have joined the DLG partnership are: BBVA, Bank of America, Bank of New York Mellon, Bank of Tokyo-Mitsubishi UFJ Financial Group, Barclays, Citi, Commerzbank, Commonwealth Bank of Australia, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley, Mizuho, National Australia Bank, Royal Bank of Canada, Royal Bank of Scotland, SEB, Société Générale, State Street, Toronto-Dominion Bank, UBS and UniCredit.
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