Microsoft and R3 blockchain partnership aims to reduce fraud and costs

Microsoft has joined forces with a collective of more than 40 financial institutions to help push the development of blockchain technology. Working with the R3 consortium, Microsoft wants to develop and test new technologies to replace and streamline old systems used in banking and enterprise industries.

The announcement comes as the company launches the first Microsoft Envision event with the aims of bringing together business leaders to pool ideas for the digital age. Using Microsoft Azure, the company wants its partners to expand the use of Blockchain-as-a-Service and bring about change faster.

Despite the involvement of financial institutes, and the association with Bitcoin, blockchain is about much more than just moving money from one place to another. Microsoft is looking to create what it describes as an 'enterprise-grade blockchain eco-system' that can also be used in the healthcare industry, digital media and manufacturing.

Announcing the partnership with R3, Microsoft's Executive Vice President of Business Development, Peggy Johnson, says:

Known by many as the backbone of bitcoin, blockchain offers a secure and transparent way to digitally track the ownership of assets. Simply put, it promises to revolutionize the way financial institutions conduct transactions. Blockchain modernizes legacy financial processes, so trades of assets like stocks and bonds can be finalized in minutes, not days. And by enabling a more direct transfer of ownership, it eliminates the need for middlemen like clearing houses, both cutting costs and greatly reducing the risk of fraud.

With that in mind, I’m thrilled to announce a strategic partnership with R3, a consortium of leading banking institutions, to help move blockchain technology from hype to reality for the financial services industry. Together, we will help R3’s over 40 member banks develop, test and deploy blockchain technologies to modernize decades-old processes and streamline operations, potentially saving billions of dollars from back-office operations.

Check out the video below in which Microsoft explains its vision a little:

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