Ivno Token Trial
What is it?
The Ivno Corda Trial was a world first with 28 participating organisations creating $18bn denominated Trial Tokens and transferred them in the Ivno network demonstrating how instantly mobile collateral tokens could be used for instant settlement, collateral management and effective cash transfer. In a live demonstration of the Ivno Corda Application trial collateral tokens were moved instantly between nodes deployed by Raiffeisen Bank International, Natixis and Natwest.
Why do we do it?
The existing financial plumbing and post trade processes are well recognized to be slow, inefficient, costly and outdated. Ivno’s approach of providing a universal and scalable solution is designed to significantly reduce costs, remove inefficiencies and create new business opportunities across the financial landscape. DLT has been estimated to potentially reduce bank infrastructure costs by US$15–20 billion by 2022, and Ivno aims to help achieve these savings, in addition to enabling costs savings across asset managers, exchanges, clearers and corporates.
Participation in the trial was important for RBI as we were able to test Ivno’s core application in three use cases:
- Instant Settlement — Banks participating in the trial were able conduct a live atomic swap of simulated ETF tokens in exchange for Ivno Collateral Tokens. Atomic swaps are a highly anticipated area of DLT and smart contracts as they promise users the ability to exchange tokens of value directly with other entities within a single, final transaction, without the need for an intermediary. This advancement of technology removes the possibility of failure of one side of the trade.
- Real-Time Collateral Mobility — Collateral tokens enable corporates, banks, buyside and brokers to instantly transfer high quality assets between subsidiaries/branches, enabling balance sheet optimisation and enhanced intra-day liquidity.
- Instant Effective Cash Transfer — Large treasury functions promises to save significant cost and complexity by mobilizing large value balance transfers between subsidiaries instantaneously without incurring the existing complexity and cost of transfer.
Who is participating?
The trial was conducted by 28 financial organizations that are part of R3 consortium, including 18 banks and 3 securities exchanges.