The blockchain network of trade Finance Marco Polo, built on the platform of Corda R3, there were two pilot the real deal.
According to a press release, the trade is carried out between two German companies: international technology Voith group and the leading manufacturer of pumps and valves KSB SE. One transaction was associated with the delivery of special hydraulic couplings from Germany to China, and the other with the delivery of the pumps in Germany.
As noted in the statement, for the first time data exchange necessary for the payment of commercial transactions were carried out, Voith, KSB and in digital form via the network Marco Polo. It cut out the middleman and a large number of physical documents that make traditional trade Finance processes slow and time consuming. Financial operations were carried out by two banks, German Commerzbank and Landesbank Baden-Württemberg (LBBW), which are members of the blockchain-a consortium of Marco Polo.
It is reported that the details of the order and delivery were agreed between the companies using the DLT-network, and the payment period was provided contingent of the buyer’s Bank. After the delivery of the relevant information was entered into a network and automatically mapped with the pre-agreed data, which led to an irrevocable obligation for payment from buyer’s Bank.
The overall flow of information efficiently and transparently displayed via a blockchain platform R3 Corda, said in a press release.
“With Marco Polo we see the opportunity to make a significant step towards improving security, increasing efficiency and accelerate payments processing the payments. Fascinating to see how modern technologies such as DLT, are used in such a conservative area of trade financing”, — said the head of the Department of export financing in KSB SE Ralph van velzen (Ralf van Velzen).
In a statement, the consortium said that the next step will be full implementation of the transaction through the network Marco Polo with a direct connection to the systems of enterprise resource planning (ERP integration). Also, the consortium expects in the future to involve more banks.
We will remind that earlier a proof of concept for blockchain-the Marco Polo held a successful Japanese Corporation, Mitsui Bank and Sumitomo Mitsui Banking Corporation (SMBC), who is also a member of the consortium.