Blockchain digitises Commerzbank and LBBW trade finance transaction
(15 August 2019 - Europe) LBBW and Commerzbank have executed another trade finance transaction between Voith and KSB SE on the Marco Polo trade finance network.
The system is structured using 'Corda.', R3’s distributed ledger technology (DLT) platform. In this instance logistics provider Logwin AG was incorporated into the digital process chain directly and in real time, representing a significant milestone in the expansion of digital trade finance advances.
Payment terms were secured by an irrevocable payment commitment triggered through automated matching of trade data. Automatic matching of trade data was attained for the first time with involvement of the executing logistic provider (Logwin) which entered the relevant transport details directly into the network.
“The goal for future development is to expand the Marco Polo network, bringing additional relevant parties for trade transactions on board such as insurance companies, inspection authorities, local chambers of commerce, etc. In this way, the entire supply chain can swiftly and digitally be mapped" stated Commerzbank’s Global Head of Trade, Enno-Burghard Weitzel.
Separately Standard Chartered become the latest bank to pilot the Voltron blockchain solution for an oil transaction, also ion R3’s Corda framework s but built by CryptoBLK. The group confirms it will now ramp up its contribution to the project to expand the application beyond letters of credit following the first live, commercial pilot that Standard Chartered has conducted using Voltron.