Barclays Bank and Royal Bank of Scotland (RBS), two of the leading commercial banks in the United Kingdom are reported to be joining hands in R3 for a blockchain trial aimed at streamlining real estate purchases. A total of 40 participants have signed up for the trial that was made possible using a tool developed by Instant Property Network (IPN). IPN is a startup company that utilizes the blockchain platform provided by R3’s Corda.
According to a report published on Bloomberg, leveraging the blockchain technology for real estate exchange around the world could culminate in savings of about $160 billion. However, some banks, which were sceptical at first are currently warming up to the idea.
The director for mortgage innovation at RBS Dan Salmons speaking to Bloomberg said:
“We are near the end of the hype cycle and have not found a great consumer solution for distributed ledger technology until now. Furthermore, Property is an industry that is ripe for this, where a complex difficult process for customers could be made cheaper and more transparent.’’
The head of the group innovation office at Barclay’s New York outpost expressed his positive opinion saying:
“When a person wants to purchase a house, the process encompasses a whole host of different interactions with different businesses and governmental entities that can be uncomfortable and drawn out.”