Banks are Conducting Cross-Border Trade Using IBM-Powered We.Trade
Banks trading on a Blockchain platform
Several Banks in Europe have stated that they have completed several cross-border trades through an IBM blockchain platform. The announcement which was made on Tuesday stated that live transactions made on We.Trade in the last 5 days among 10 companies were all blockchain powered and were between four partnering banks.
The blockchain platform is built on IBM’s platform, We.trade which was established by several banks including Deutsche Bank, KBC, HSBC, Nordea, Santander, Rabobank, UniCredit and Societe Generale. The banks wanted to boost trade efficiency cross-border monetary transactions. IBM had planned to start testing We.Trade I May with the expectation of launching the platform this summer.
According to Societe Generale, the focus on SMEs within Europe improved transactions and enabled the platform to grow faster. IBM’s Europe manager Parm Sangha stated that:
“We.Trade has already moved from conducting pilot apps to conducting live transactions which are now borderless. This platform has shown the power of Blockchain in an enterprise sector.
At the moment We.Trade is operating in 11 countries from Europe. According to We.Talk’s COO Roberto Mancone the next phase of this platform will have members getting buy-in from other banks and their clients either from Europe or other countries.
Blockchain platforms are becoming very popular among financial institutions and other organizations because of their reliability especially because of the effectiveness, reliability, and nature of Blockchain technology. With Blockchain technology bank reconciliations are not required which reduces the time of conducting transactions, especially in the procurement departments. More to that transactions between banks are also faster and more transparent. Chances of fraud are also reduced because an agreed transaction can only be reversed when all involved parties agree.
Some well know companies have already launched blockchain platforms. A good example is Samsung which launched a blockchain platform of monitor it’s supplied across the world. Many banks are also doing a lot of research on where the technology can be used in the banking system.