Marco Polo Blockchain Network Welcomes Japan’s SMBC Bank For Trade Finance
Blockchain services are being adopted by many companies nowadays, even in financial institutions and banks. The immutable ledger’s appeal helps to keep all transactions organized in a trustless way, which clearly appeals to the Sumitomo Mitsui Bank Corporation (SMBC). The Japanese bank has chosen to improve trade finance with the use of R3’s Marco Polo blockchain network, according to reports from CoinDesk Japan. SMBC is presently the third-largest bank in Japan, based on assets.
As SMBC joins the network, they have the company of BNP Paribas and ING, among others. Last much, the product managed to complete the first trade finance operations, which included German Firms and Commerzbank. The vice chairman of SMBC, Yasuyuki Kawasaki, commented that trade finance “is very complicated,” often including paper-based transactions.
Kawasaki commented that this “time-consuming process” has continued for a century, which is part of what led SMBC to the blockchain network. The lack of complications will streamline the former paper-based process. Hopefully, through this new project, new services will be available “later this year.”
Daniel Cotti, who acts as the managing director of the Centre of Excellence for Banking and Trade for Marco Polo, pointed out that this network has both the “resources and technology” to change up trade finance for the banking industry. Cotti believes that the implementation of this network with the banks will help to improve the transparency and reduce risks.
Along with the announcement from this major Japanese bank, China’s central bank announced a partnership involving one of their subsidiaries with trade finance. In France, lender Societe Generale has decided to issue bonds that are worth 100 million euros with the use of the Ethereum blockchain.
Trade finance stands to greatly benefit from the use of blockchain technology. Blockchain platform We.Trade, which focuses on trade finance, only just went live in July last year. Hopefully, through more implementation like these cases, blockchain’s reach can continue to expand.