MonetaGo is leaving Hyperledger Fabric and porting its fraud mitigation network to Corda Enterprise, R3’s commercial distribution of its open source blockchain platform, Corda.
A blockchain-based solution launched in March this year, MonetaGo’s fraud mitigation network helps banks reduce fraud in receivables financing by enabling them to check if invoices have already been financed and verify the authenticity of electronic waybills. The blockchain network enables a bank to hash certain elements of the invoice, create a unique fingerprint for it and then publish it to the network. The bank can then apply different states to the invoice, such as whether it has been registered or financed. MonetaGo is also working to add in other states, including whether an invoice has been registered with the tax authority.
The fraud mitigation network is currently being piloted by Swift in India, and the Corda Enterprise migration will power the next deployment of the solution in Latin America, with an initial launch consortia in Mexico comprising six banks.
“With the new deployments that we have coming up in Mexico, as well in other Latin American countries, the regulators themselves have been potentially looking at adopting this system and Corda has a good architecture for that. Because we are not just publishing anonymised hashes any more, having the architecture for them to actually participate in the blockchain makes a lot of sense,” Jesse Chenard, CEO of MonetaGo, tells GTR. “As we have seen the distributed ledger technology (DLT) market unfold, it has become clear R3 is emerging as the leader in the financial services space. In order to make sure we take advantage of this momentum, it makes sense to provide our applications built on Corda Enterprise.”
Alisa DiCaprio, head of trade and supply chain at R3, explains: “The really exciting part of this announcement is that it unlocks some of the additional benefits of blockchain, beyond familiar topics like immutability and deterministic transactions. It does this by combining multiple applications for specific use cases that result in a richer solution. Today we’re joining fraud mitigation together with trade finance; in the future we’ll add things like KYC, onboarding, sanctions monitoring, and settlement.”
This announcement is the latest in a growing trend of financial services providers shifting over to Corda from Hyperledger. In June last year, the Blockchain Insurance Industry Initiative, B3i, a joint effort between 13 insurance and reinsurance companies to leverage blockchain for insurance, partnered with R3 to bring its solution into production on the Corda platform, leaving the Hyperledger Fabric framework on which it had developed its prototype.
Like B3i, MonetaGo’s reasoning for moving to Corda comes down to data privacy, scalability, interoperability and developer productivity. “Where you’ve got multiple different entities and you need to do one-to-many permutations, testing between the two different protocols has shown right now that at least for the foreseeable future it is Corda which is best suited for this,” says Chenard.
MonetaGo has been a member of the R3 partner network since September 2018, and the Corda Enterprise migration will be completed in early 2019.