R3 to Launch DeFi Blockchain With Its Own Token

R3, the provider of the corporate DLT-platform Corda, is exploring the possibility of launching a network for decentralized finance (DeFi) in the form of an Ethereum layer-2 solution with its own token. Ledger Insights reports.

The pilot network project, called Obscuro, will combine the transparency of a public blockchain with the privacy of a private one, the firm explained.

The proof of concept for the solution is expected to be completed in 2022. R3 stressed that they will not launch either the network or the corresponding token without a clear regulatory framework.

In the company’s view, its solution will provide a safer form of DeFi, reducing the risks of abuse, such as front-running by miners.

The privacy technology Conclave will enable this. It works as a “black box”, concealing transactions from third parties. However, R3 intends to make this feature “deferred” — over time the information will become open to maintain the necessary level of transparency.

“R3 is exploring how to fuse traditional finance and DeFi, and we believe we have unique opportunities to enable such a linkage. Neither of them will become the winner. We believe the future of these two worlds will be hybrid,” the company said.

Earlier, R3 announced the launch of a DeFi token in the Corda ecosystem.