Commerzbank and LBBW set a new blockchain milestone
Commerzbank and Landesbank Baden-Württemberg (LBBW) have executed another milestone trade transaction, this time integrating logistics provider, Logwin AG, was into the digital process chain – directly, and in real time.
Just as before, the transaction took place between mechanical engineering group, Voith, and manufacturing supplier, KSB, via the Marco Polo trade finance network and built on R3’s distributed ledger technology (DLT) platform, Corda.
The delivery traveled on the blockchain from Germany to Taiwan
For the first time, automatic matching of trade data was completed with the integration of a logistic provider, Logwin, who entered the transport details directly into the network.
“Now, an independent third-party – in our case the logistics provider – is able to trigger a payment obligation in favour of the supplier,” says LBBW international trade and payment solutions head, Matthias Heuser.
The delivery of special hydraulic couplings traveled all the way from Germany to Taiwan using blockchain technology.
Speaking from a buyer’s perspective, KSB export financing head, Ralf van Velzen, praises the blockchain integration for ensuring payment commitment becomes effective only if the goods are physically in the hands of the logistics provider, and on their way to the delivery destination.
In the future, Commerzbank want to look at other potential parties in the trade transaction process, such as insurance companies, inspection authorities and local chambers of commerce.
