FinTech specialist Identitii Limited (ASX:ID8) and enterprise blockchain software firm R3 have agreed to run a global, multi-bank trial of the Overlay+ ISO solution.
Identitii CEO Nick Armstrong said using the company’s Overlay+ ISO solution will allow R3 participants to explore its benefits in quickly and cost effectively complying with the new global financial messaging standard, ISO 20022.
The Overlay+ ISO 20022 CorDapp trial is expected take place in Q3 FY20 and run for seven weeks, enabling multiple financial institutions to evaluate Identitii’s Overlay+ ISO on R3’s Corda Enterprise blockchain.
“The deadlines for migration to ISO 20022 are varied across the globe, but in key areas such as Europe, where TARGET 2 consolidation requires banks to have fully adopted the standard by November 2021, and Thailand which is migrating in 2020, banks are proactively searching for solutions to these issues today,” Mr Armstrong said.
This is a perfect opportunity for Identitii to reach a large audience of prospective customers in a short timeframe, and we look forward to showcasing the power of Overlay+ ISO to R3 participant banks.”
Identitii’s solution helps banks to convert cross border payment messages from the old messaging standard, known as MT, to a new mandated standard, called ISO 20022, using existing systems and without the risk of data loss or truncation.
R3 CRO, Cathy Minter, said the ISO 20022 migration is a big problem for banks today, compounded by some very tight deadlines for adoption.
“The use of blockchain to solve these issues is unique among the solutions available today and we are delighted to be supporting Identitii in this capacity.”
Mr Armstrong said participants in the CorDapp trial will individually evaluate Identitii’s Overlay+ ISO that uses enterprise distributed ledger technology running on Corda.
The trial will replicate real-world cross-border payment scenarios allowing Identitii to demonstrate the benefits of Overlay+ ISO to a large pool of engaged financial institutions from R3’s ecosystem.
Mr Armstrong said Identitii will generate non-material revenues from each financial institution participating in the trial. Based on previous CorDapp trials, it is envisaged that more than 50 banks are likely to participate.