Fintech company R3 plans to launch its own DeFi network

Fintech company R3 plans to launch its own DeFi network

R3 blockchain developer Corda plans to launch a DeFi network with its own token. The company shared such plans at the CordaCon 2021 conference, Ledger Insights reports.

R3 is the lead partner of a consortium of 70 major financial firms, including giants such as Barclays, Credit Suisse, UBS and Bank of America, and is responsible for the field of blockchain technology development and application in today's financial system.

R3's pilot project is called Obscuro, and the company assures that it will bring together traditional and decentralised finance markets while remaining transparent to regulators.

R3 is exploring the possibility of combining traditional finance and DeFi. We believe we have what it takes to enable such a connection and believe that the future of these two worlds will be hybrid, the company said at the conference.

Supposedly, the technical part of the new DeFi network will be ready as early as 2022. However, as the company plans to make the new product fully legal, the launch of Obscuro will only take place after regulatory approval (the company is based in New York), with which there could be some difficulties due to the unclear legal framework for DeFi-related projects.

There are a few questions that have yet to be answered and a couple of regulations that need to be agreed upon before the project can be launched, the statement said.

Interestingly, R3's new DeFi-network will be both transparent and partially private, which will protect against the use of arbitrage strategies by miners.

The Obscuro network will feature a number of nodes using Conclave technology (confidential computing technology) and running on servers with Intel SGX processors. All user transaction data is encrypted and not available to other users, only special software based on Intel SGX can decrypt transactions and make results visible. In this way, there will be delayed transparency, i.e. transactions will be hidden at the outset but will become publicly available after they have taken place, thus preventing the network from being exploited for criminal purposes.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

View All Posts By Jack Evans