Enterprise software firm R3 said Tuesday it has collaborated with the Financial Conduct Authority (FCA), RBS and another major global bank to build a prototype application for regulatory reporting of mortgage transactions on R3’s Corda distributed ledger technology (DLT) platform.

The application is also able to generate automated delivery receipts for the regulator when a mortgage is booked.

The application was built on R3’s Corda platform, a financial grade distributed ledger that records, executes and manages institutions’ financial agreements in perfect synchrony, with point-to-point communication to ensure the privacy required by participants in wholesale financial markets.

Corda’s technology allows the application to provide a single, immutable record of mortgage transactions and interpret regulator rules on a distributed ledger, according to R3.

The project participants will continue working with R3 to move towards a live pilot of the application. This will involve engaging with other UK mortgage lenders, the academic community and other regulatory bodies to showcase the prototype and receive feedback for shaping a production-ready version, said R3.

“We have engaged with hundreds of regulators across the world since the outset of R3,” said David Rutter, CEO of R3.  “Our members are some of the most heavily regulated institutions in the world, and so streamlining and improving regulatory reporting has been a key consideration as we develop Corda. Bringing regulators and banks together in projects like this is the only way to develop effective, futureproof solutions that meet the needs of all parties involved.”