Commerzbank joins IBM & UBS to develop blockchain-based platform for trade finance

posted 2 months ago
Commerzbank AG, Bank of Montreal, Erste Group Bank AG and CaixaBank SA have joined an initiative launched by UBS Group AG and IBM Corp aimed at building blockchain-based technology to support trade finance transactions.

The platform called Batavia would help banks and their clients automate the trade finance process, which remains highly manual and paper-based, the participating companies said on Wednesday.

In trade finance, banks provide funding and other services to importers and exporters to facilitate commerce.

Among other things Batavia will allow parties to track a transaction from when a shipment leaves a port to when it reaches its destination.

A pilot is expected to take place with the new banks in the first quarter of 2018, Wieck said. The project was first announced in 2016.

The platform would also use so-called smart contracts, or computer programs on the blockchain that automatically enforce the terms of an agreement. For example the platform would release payments for a transaction along each step of the trade process.
Tags: blockchain, news