First transactions carried out on blockchain-based Marco Polo network
Commercial transactions have been carried out digitally and processed using the trade finance network Marco Polo on R3’s Corda blockchain platform for the first time, reports Jane Connolly.
A seamless process
LBBW and Commerzbank announced they have “reached a milestone” in the digitalisation of commercial transactions based on distributed ledger technology (DLT), following two successful executions in a Marco Polo pilot project.
The data transfer took place between technology company Voith and pump and valve manufacturer KSB SE – one involved the delivery of equipment from Germany to China and the other a delivery within Germany.
The companies first agreed the order and delivery details via the Marco Polo network and secured a conditional payment commitment from the buyer’s bank. Once the deliveries had been made and the details entered into the network, this triggered an irrevocable payment obligation from the buyer’s bank.
Ralf van Velzen, head of export financing at KSB SE & Co KGaA, says: “With Marco Polo we see an opportunity to take a significant step towards increased security, more efficiency and greater settlement speed in the area of payment processing.”
Technology partner Trade IX’s DLT platform made it possible to secure the transaction by a payment commitment through the digital exchange of trade data.
Next, the focus will move to complete executions of transactions via Marco Polo with a direct connection to the customers’ management systems (ERP integration), to achieve a seamless process.
