The recent partnership of IBM with international banks to develop a blockchain trade finance platform called Bavaria successfully processed the first live transactions. The news comes from a press release that was published today (April 19th) on Finextra.
In this project, IBM partnered with the Bank of Montreal (BMO), CaixaBank, Commerzbank, Erste Group and the United Bank of Switzerland (UBS). What started as an initiative last fall is now a reality – and a live trade finance platform which is based on smart contracts that close trade agreements.
According to the announcement, the first transactions included sending cars from Germany to Spain and furniture production textiles around Europe. Nike Giesber of Commerzbank stated that the “joint successful live transaction demonstrates the potential of such a platform”
As Giesber said:
“Trade data and smart payment, which is automatically triggered by the transport data, form an important basis for risk management and financing instruments and add value to every supply chain.”
He also added that Batavia is currently looking forward to partnering with many other fintech and financial institutions. The platform’s focus is to build out a product-ready solution that will be used by more and more banks.
Meanwhile, India’s ICICI Bank made a similar move earlier this week. After designing a platform for domestic and international trade finance transactions, the bank has put more than 250 corporate customers on the Blockchain platform, live-piloting it without a single issue.
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