A Blockchain trade finance platform developed by IBM and other international banks has reported its first live pilot transactions
IBM’s partnership with international banks to develop a Blockchain trade finance platform called Batavia has resulted in the platform’s first live pilot transactions, according to a press release published today, April 19.
IBM, the Bank of Montreal (BMO), CaixaBank, Commerzbank, Erste Group, and the United Bank of Switzerland (UBS) began work on the initiative last fall. Batavia works by tracking events in a product’s supply chain, while key events can prompt the execution of smart contracts that close trade agreements.
According to the announcement, the initial transactions involved sending cars from Germany to Spain and furniture production textiles from Austria to Spain.
Niko Giesber of Commerzbank said that the “joint successful live transaction demonstrates the potential of such a platform”:
“Trade data and smart payment, which is automatically triggered by the transport data, form an important basis for risk management and financing instruments and add value to every supply chain.”
Giesber adds that Batavia may look to partner with other fintech and financial institutions as they move forward with “building out of a product-ready solution.”
Earlier this week, India’s ICICI Bank put more than 250 corporate customers on its Blockchain platform, designed for domestic and international trade finance transactions.