Largest Blockchain Open Account Trade Finance Trial On R3 Completed By Marco Polo NetworkDecember 13, 2019
Blockchain trade finance network Marco Polo has successfully completed the largest blockchain open account trade finance trial on R3’s blockchain platform Corda.
The Marco Polo Network was launched in 2017 by the world’s leading financial institutions including ING, Commerzbank, BNP Paribas, Anglo-Gulf Trade Bank, NatWest, Natixis, Bangkok Bank, and others. Based on R3’s Corda blockchain, the network allows banks to easily integrate into trade orchestrations, bringing in ERP, procure to pay, logistics, payment, insurance data, real-time into the transactions.
Comprised of over 340 participants from multiple sectors including financial services, IT and telecoms, logistics, maritime, real estate, hospitality and some of the biggest players in the automotive industry, the trial took place over a seven week period.
The participants, including ABN AMRO, Banorte, BMW, Citizens Bank, Commerzbank AG, International Islamic Trade Finance Corporation, SBI Holdings, SBI R3 Japan, reportedly worked with the Marco Polo business network to trial the working capital applications developed by TradeIX with a focus on the Receivables Finance solution currently available for production use on the Marco Polo Platform. In a receivables financing agreement, a business borrows against the amount of its outstanding invoices for cash. It allows companies to optimize their working capital, mitigate credit risk and improve liquidity.
The solution, which is available on the Marco Polo Platform and the Corda Network, is an integrated solution built to overcome critical trade finance challenges including lack of connectivity, inefficient processes and high onboarding costs.
According to the release, 100 percent of respondents surveyed as part of the project agree that trade finance and working capital solutions built on a distributed architecture have the potential to significantly improve their industries.
“The participation of ABN AMRO in this trial demonstrates our belief that new technologies together with cocreation in cross-industry ecosystems will shape innovation in the financial and trade system,” said Arnout Buschenhenke – Director Innovation Asset Based Finance N.V. and Marjan van der Plas – Innovation Manager Platforms and DLT Ecosystems at ABN AMRO. “This was a valuable collective learning and development effort together with peers, business partners and clients. This is key to develop new products and services and to make global markets operate more efficient and seamless in the interest of our clients.”
100percent of respondents also believe that Marco Polo will accelerate and improve the receivables discounting process, and reduce costs for both banks and corporates, with 75% believing this will happen within 5 years.
“The Marco Polo Network will change the traditional bank-corporate relationship in an innovative way to make the real multi-bank platform happen,” said Munetoshi Yamada, Head of Business Development Dept., SBI R3 Japan. “SBI R3 Japan is proud to encourage more banks and corporates to join this truly global ecosystem.”
Cathy Minter, Chief Revenue Officer at R3, said that the success of their largest trial to date marks an exciting time for the Marco Polo network.
“The cross-sector participation we have seen in this trial is testament to the potential blockchain has in transforming trade finance,” Minter said. “We are proud partners of TradeIX and look forward to continuing our shared aim of revolutionising the trade finance landscape with blockchain technology.”
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