Digital Trade Chain: IBM to build blockchain based trade finance platform for Europe’s largest banks
Seven of Europe’s largest banks have awarded IBM the contract for Digital Trade Chain, a blockchain based trade finance platform for SMEs
IBM announced this week that it had been chosen by a consortium of seven of Europe’s largest banks to build a blockchain based trade finance platform. The platform is designed to simplify trade finance processes for small and medium enterprises in Europe by addressing the challenge of managing, tracking and securing domestic and international trade transactions.
The Digital Trade Chain which consists of Deutsche Bank, HSBC, KBC, Natixis, Rabobank, Societe Generale and Unicredit will run in the IBM Cloud and connect the parties involved in a trade transaction, both online and via mobile devices.
By addressing the financing gap of small and medium enterprises, a traditionally underserved market segment, the solution is anticipated to help open new revenue streams, initiate new trading relationships and foster trade growth.
Rudi Peeters, CIO, KBC on behalf of the Consortium, stated,
“To make the Digital Trade Chain network a reality and enable it to serve potentially thousands of the consortium’s banking clients, we turned to IBM in enterprise blockchain to help us quickly bring this highly scalable system into production.”
“Their blockchain and banking industry expertise will help us create a new platform for small and medium businesses in Europe that can enable them for faster, easier and cheaper trade transactions,” he continued.
Digital Trade Chain network will be highly scalable, supporting customers from all banks in the consortium and helping to equip SMEs initiate trade with new partners domestically or in other European markets.
The network will deliver SMEs a consolidated view of trade transactions as well which will help promote accountability in transactions, access capital and contribute to reducing risk. By digitizing the entire supply chain process from order to settlement, some of the administrative tasks for SME customers will be optimized as well.
More here [IBM]