First Marco Polo trade finance pilot between Asia and Europe
Bangkok Bank and Commerzbank have completed their first international trade transaction to test the distributed ledger technology (DLT)-based Marco Polo network, reports Jane Connolly.
Order and delivery data for the transaction was agreed between German speciality glass manufacturer Schott and Thai packaging company APA Industries, via R3’s Corda blockchain technology on the Marco Polo trade finance network.
Payment was secured by a conditional payment commitment from the buyer’s bank, Bangkok Bank. By automatically matching trade data on DLT to create an irrevocable payment commitment, it is anticipated that the complex and lengthy process of securing commercial payments will be made quicker and easier.
All four parties involved were able to view the trading data and communicate with each other via specially set-up digital nodes.
“These transactions prove how relevant DLT will be for German SMEs and the export industry,” says Enno-Burghard Weitzel, head of product management trade services at Commerzbank AG. “We are happy to be one of the drivers to develop this digital solution for trade finance and to support clients with our expertise.”
This was the second successful pilot for Marco Polo, which is a project of R3’s 22-bank blockchain consortium and uses Trade IX’s DLT platform.
The focus will now be on the complete mapping of transactions via Marco Polo with direct connection to the customer’s existing supply chain management systems (ERP integration).
With the planned addition of banks and participants from the transport and insurance sectors, the network will be able to map the entire value chain in the foreign trade business.
