BAML and Microsoft tie-in for blockchain technology
(26 September 2016 – Global) This week, at Sibos, an annual conference organized by SWIFT for the financial industry, technology giant Microsoft. and Bank of America Merrill Lynch announced blockchain partnership in a bid move forward “transformation of trade finance transacting.”
In a statement, the two companies said they “will build and test technology, create frameworks, and establish best practices for blockchain-powered exchanges between businesses and their customers and banks.”
Experts from Microsoft’s Treasury division will be advisors and initial test clients to the project, establishing the first Microsoft Azure-powered blockchain transaction between a major corporate treasury and financial institution.
“By working with Bank of America Merrill Lynch on cloud-based blockchain technology, we aim to increase efficiency and reduce risk in our own treasury operations,” said Amy Hood, executive vice president and chief financial officer at Microsoft.
“Businesses across the globe – including Microsoft – are undergoing digital transformation to grow, compete, and be more agile, and we see significant potential for blockchain to drive this transformation.”
“The potential benefits of blockchain will help drive meaningful supply chain efficiencies to the clients of both Microsoft and the bank. This project is another example of our continued commitment to introduce financial innovations for the betterment of global commerce,” said Ather Williams, head of Global Transaction Services at Bank of America Merrill Lynch.
“We are excited to be working with Microsoft on this ground-breaking blockchain proof of concept that has the potential to help redefine, digitize, and improve how trade finance instruments are executed today,” said Percy Batliwalla, head of Global Trade and Supply Chain Finance at Bank of America Merrill Lynch.
The teams from both companies will demonstrate the technology at Sibos in Geneva, Switzerland. Following the initial development and testing, they will work to refine the technology and evaluate applications to include more complex use cases and additional financial instruments.
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