A group of European banks reported on the successful execution of the first cross-border financial trades managed on we.trade blockchain platform. Today's announcement states that 7 real-life trade transactions were completed by 10 banks in 5 different countries.
Why it is important
- European banks are actively experimenting with blockchain technologies. HSBC has recently completed world’s first trade finance deal using blockchain. Another bank, Santander has tested the blockchain platform Fast Track Listing. And earlier in April, became the first global bank to issue a loan using blockchain technology.
- The Hyperledger project involves 235 organizations. Among them are leading developers in the field of finance, "Internet of things" and other technologies. IBM is developing the Fabric, a blockchain-network that allows you to increase transaction speeds to an around thousand per second. The technology developers are not planning to implement it into the cryptocurrency market, as they are afraid of political issues.
We.trade platform is designed to improve the effectiveness of cross-border financial transactions. It is developed by Deutsche Bank, HSBC, KBC, Natixis, Nordea, Rabobank, Santander, Société Générale and UniCredit. At the base of the platform are IBM's blockchain and Hyperledger Fabric technology. We.trade was designed to offer users a simpler user-interface, while implementing the smart contracts technology access to allow for new trading opportunities.
“The we.trade platform is a live, blockchain based trade platform. These transactions prove that we.trade is a robust and commercially viable proposition. We are delighted to have launched for the first time in the world, a blockchain based platform that enhances the overall customer experience, when trading internationally,” said Roberto Mancone, Chief Operating Officer, we.trade.
Testing of we.trade platform started in May, and its commercial use was planned by the project participants to commence this summer. Earlier, representative of Société Générale expressed hope that platform’s orientation for a small and medium-sized business would facilitate its rapid advancement in Europe.
"As we.trade has moved from pilot applications to conducting live transactions across borders, it has demonstrated the power of blockchain technology in an enterprise setting. To convene a large network of regulated banks and demonstrate how blockchain technology can help them gain efficiencies and provide greater transparency in live transactions is a disruptive model that has the potential to reshape the future of global trade finance," said Parm Sangha, GBS Blockchain Leader, IBM.
Currently, we.trade operates in 11 European countries, while Roberto Mancone in his statement has said that the next step would be to attract additional banks and their customers in Europe and beyond.
By Nadya Astam