Citi Joins Hyperledger, Forms Besu Working Group with DTCC

Hyperledger Foundation, an open-source blockchain software developer, has announced the addition of two new members – Citi and the Brazilian Development Bank (BNDES). These new members join the existing 133 members of the foundation, which include banks, central banks, tech firms, nonprofits, educational institutions, and retailers. Members can provide financial support or contribute through “sweat equity,” ensuring the continuation of the foundation’s 13 projects, all of which produce enterprise-grade code.

One of the foundation’s projects is Hyperledger Besu, which is Java-based software with an extractable implementation of the Ethereum Virtual Machine (EVM). Initially developed by Consensys, this software was contributed to the Hyperledger Foundation in 2019. It is common for companies to contribute code to open-source foundations to foster faster development and create a larger ecosystem.

To support the growing demand for their products, Hyperledger invests a significant portion of its financing into training expert users. As adoption of the foundation’s products increases, more companies, governments, and organizations are incorporating the code into their production. This requires partnerships and vendors to support them in implementing and maintaining the software.

Hyperledger works with 35 vendors and emphasizes the importance of having a diversity of vendors and partners to create a healthy marketplace for their software. While some projects have overlapping features, open sourcing allows companies to collaborate on noncommercial aspects of software development.

A new working group called the Hyperledger Besu Financial Services Working Group has been established to facilitate stronger alignment between service developers and organizational users. The Depository Trust & Clearing Corporation (DTCC) will chair this group, and other participants include Accenture, Banco Central do Brasil, Consensys, Citi, Japan Securities Clearing Corporation, Mastercard, Santander, and Visa.

In a survey conducted by Blockdaemon in early 2024, Hyperledger Besu was identified as the most widely adopted software for asset tokenization. More than 40% of the 92 firms surveyed mentioned its use. The tokenization landscape is described as “splintered” and not easily predictable in the future. It is possible that a few interoperable private chains could dominate the majority of tokenized flow.

The Hyperledger Foundation is a part of the Linux Foundation and continues to expand its membership to promote collaboration and innovation in the blockchain industry.