Nine of the biggest European banks revealed to have completed numerous cross-border financial trades using the distributed ledger platform. It was reported that 10 companies have taken advantage of the blockchain-based system to execute trades via 4 partner banks.
The platform, called we.trade, is a joint initiative founded back in October 2017 by some of the largest players in the European financial markets – Deutsche Bank, HSBC, KBC, Natixis, Rabobank, Societe Generale, Banco Santander and UniCredit. Scandinavian Nordea Bank has joined the consortium a month later and the technical side of the initiative is developed by technology giant IBM.
We.trade was created to simplify international transactions as well as increase their efficiency. Blockchain technology comes in handy in this case, as it enables transactions to be completed in minutes rather than days, as is the case with traditional cross-border money transfers.
As of right now, we.trade is available in 11 European states – Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden and the United Kingdom. The organization already has expansion in mind, with COO of the platform Roberto Mancone saying that “the next step will be getting buy-in from additional banks and their customers in Europe and further afield.“
There is plenty of excitement generated by we.trade with its participants looking forward to reaping potential benefits of the platform. Mr. Mancone also telling that “We are delighted to have launched for the first time in the world, a blockchain based platform that enhances the overall customer experience when trading internationally.“
He has also went on to add that, “This live trade is a massive achievement for all involved. Not only has we.trade built a technical solution, it has also managed to create real collaboration across multiple banks and increased the connectivity of the trading ecosystem. This really is collaboration at its finest.“
Parm Sangha, IBM Europe blockchain head, claimed that “As we.trade has moved from pilot applications to conducting live transactions across borders, it has demonstrated the power of blockchain technology in an enterprise setting. To convene a large network of regulated banks and demonstrate how blockchain technology can help them gain efficiencies and provide greater transparency in live transactions is a disruptive model that has the potential to reshape the future of global trade finance.“
The partners are now hopeful other large financial institutions will join the platform, as it has already proven its ability to ensure transparency and greater efficiency. Major banks within Europe and the US have already started to realize the potential of blockchain in their operations and this will hopefully result in greater adoption and benefit for the entire crypto industry.
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I have been following the crypto markets since mid 2017, just in time to witness the incredible surge of the digital asset industry. Fascinated by the potential of blockchain technology I’ve started to dig deeper and that’s how I ended up meeting the Toshi Times team. I hold a Political Science degree, therefore the crypto regulation development is particularly interesting for me. I’m also heavily involved with music, running my own label, a YouTube channel and working with distribution. People call blockchain the ‘Fourth Industrial Revolution’ and I believe it will change our daily lives in the coming years and we will have the front row seats to witness it.