The first two actual-global transactions have been carried out on Marco Polo, the alternate finance blockchain built on R3’s Corda platform.
Announced Thursday, the trades passed off among two German groups: Voith, a producer of machines such as generators, mills and transmissions, and KSB SE, a provider of pumps and valves. One transaction worried about the delivery of first hydraulic couplings from Germany to China and the opposite the shipping of shoes within Germany.
While all which could sound prosaic, those transactions have been splendid for the reason that vital records became exchanged via dispensed ledger era (DLT), ditching the usual gradual and high priced bodily documents and intermediaries, consistent with a press launch from the consortium in the back of the blockchain.
The corporations agreed on the order and transport info thru the Marco Polo community, and after the goods were introduced, the cargo records turned into entered into the machine and “mechanically matched with previously agreed facts, triggering an irrevocable payment responsibility on the part of the purchaser’s bank,” the release said.
The amount of cash involved changed into not disclosed, nor did Marco Polo spell out which company turned into the client and which turned into the vendor.
Banks on board
Payments and financing had been handled via banks, also German: Commerzbank and Landesbank Baden-Württemberg, each founding participants of the Marco Polo consortium.
“The transaction proves that blockchain era gives our customers a fee challenge and present-day financing for trade transactions with each overseas international locations and locally,” said Nikolaus Giesbert, a divisional board member for trade finance and cash management at Commerzbank, which has also tested DLT in capital markets.
Dr. Christian Ricken, a member of LBBW’s board of managing directors and head of its capital market business and asset management/worldwide enterprise, said DLT in trade finance “will make transactions faster, simpler and greater comfort. Not only are we breaking new floor in phrases of technology, but also the cooperation between banks and companies.”
Marco Polo stated the following step might be executing transactions with a direct connection to the clients’ corporation useful resource making plans (ERP) structures, even though it did now not deliver a time-frame for this
Founded in 2017 by way of R3 and every other blockchain tech company, Tradex, the Marco Polo community now lists 13 bank members on its internet site. Down the road, the consortium hopes to herald more banks, in addition to transportation and insurance agencies, “so that the entire cost chain for foreign change transactions is represented digitally with information,” Marco Polo stated.
However, Marco Polo is well in the back of rival community We. Trade, which already went stay final year (and also has a baker’s dozen banks on board). On the other hand, We.Trade has a narrower focus (European small and mid-sized establishments) and a nimbler company structure (it’s now not a consortium) than member-managed, globally minded Marco Polo.