First pilot client transactions executed on Batavia trade finance platform
Batavia is an open ecosystem built on IBM’s blockchain platform
Batavia, the blockchain-based trade finance platform that has been jointly developed by a consortium consisting of Bank of Montreal (BMO), CaixaBank, Commerzbank, Erste Group, IBM and UBS, has completed its first live pilot transactions with corporate clients.
As reported in October 2017, the gang launched this platform to be accessed by organisations of all sizes anywhere in the world.
In the latest development, the initial transactions included the trading of cars from Germany to Spain; and textile raw materials for furniture production from Austria to Spain.
Batavia is an open ecosystem built on IBM’s blockchain platform. It provides a digital and automated way of arranging, securing and financing international trade transactions.
The pilot transactions were conducted with a variety of transportation modes, geographies and trading parties of various sizes, “highlighting Batavia’s ability to scale and manage diverse transaction types”.
“The trade data and the smart payment automatically triggered by shipment data build an important basis for risk management and financing tools adding value to every supply chain,” says Niko Giesbert, divisional board member, fixed income, currencies and commodities and trade finance and cash management, Commerzbank.
According to the group, Batavia encompasses both the closing of trade agreements and the execution of smart payments, which can be automatically triggered by specified events in the supply chain and recorded in the blockchain.
The platform can integrate track and trace and risk management tools, which can be tied to events in the supply chains and signals from internet of things (IoT) devices, agreed upon between buyer and seller.
Looking ahead, the Batavia project plans to enter a new phase focused on the building out of a production-ready solution. The crew say this “may include joining forces with fintechs, financial institutions or other innovation leaders in the market”.
