Blockchain Trade Finance

Blockchain Trade Finance
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link: http://www.altoros.com/blog/blockchain-as-a-single-persistent-publish-subscribe-queue/
author: Altoros

C O N T E N T S:

KEY TOPICS

  • Its no secret that banks have had a ‘complicated’ relationship with cryptocurrencies to say the least, but a recent study from global management consultant firm Bain & Company reports that banks could reduce their trade finance operations costs by up to 80 percent by utilizing Distributed Ledger Technologies like blockchain popularized by cryptocurrency.(More…)
  • With the risks involved being quite high, especially in international trade finance, banks have stepped in to mitigate them through various products such as letters of credit and bank guarantees.(More…)
  • We.Trade is being developed by a consortium of nine European founding banks, in conjunction with IBM, to build and host the new digital cloud-based trade finance platform.(More…)
  • “Our core business, which is also what distinguishes Versara Trade from other trade finance platforms, is our Crypto Credit Enhancement service.(More…)
  • In covering the end-to-end process of a trade, Batavia encompasses both the closing of trade agreements and the execution of smart payments, which can be automatically triggered by specified events in the supply chain and recorded in the blockchain.(More…)
  • First Pilot Client Transactions Successfully Executed on Batavia Global Trade Finance Platform Global Trade Magazine (blog) Batavia, the blockchain-based global trade finance platform that has been jointly developed by a consortium consisting of Bank of Montreal (BMO), CaixaBank, Commerzbank, Erste Group, IBM, and UBS has successfully completed its first live pilot.(More…)
  • Major European Banks Complete Live Trades on IBM Blockchain You are using an outdated browser.(More…)
  • Founded in 2016, TradeIX is on a mission to rewiring trade finance by providing the most connected and secure platform infrastructure for corporates, banks, asset managers, B2B networks and value-added service providers.(More…)

POSSIBLY USEFUL

  • According to Bain & Company, one of the best upgrades banks can make is to begin using Distributed Ledger Technology such as blockchain.(More…)

RANKED SELECTED SOURCES

KEY TOPICS

Its no secret that banks have had a ‘complicated’ relationship with cryptocurrencies to say the least, but a recent study from global management consultant firm Bain & Company reports that banks could reduce their trade finance operations costs by up to 80 percent by utilizing Distributed Ledger Technologies like blockchain popularized by cryptocurrency. [1] At least, that was the impression given at the Blockchain Summit in London last week, where a range of bankers talked enthusiastically about the digital trade finance platforms they are building and the cost reductions they believe will result. [2] It builds on a number of blockchain proofs of concept the authority has undertaken, as well as two whitepapers it has authored, which explore the technology’s potential in trade finance. [3] Others talked about the possibilities for tokenization – one aspect of blockchain that enterprises have only recently begun to embrace – in trade finance. [2] Blockchain technology could also make trade finance platforms more resilient, as transactions are replicated in multiple nodes, making it impossible to attack the network. [4] The Hong Kong Monetary Authority (HKMA) is to go live with its Trade Finance Platform (TFP), built on blockchain technology, in September. [3] Combined with smart contracts, blockchain technology can also speed up the typically slow trade finance process and lower the risk of duplicate financing. [4] Blockchain technology is not without its challenges in both the trade finance and digital identity industries. [4]

We.Trade, the new name of the earlier Digital Trade Chain Project, is indicated to simplify trade finance processes and increase access to trade finance for SMEs mainly, by creating a fully-fledged blockchain trading platform. [5] Founding member banks are now taking the final steps to bringing their blockchain trade finance platform for European SMEs into production. [5] June 14, 2018 ( Source ) — Cobalt Blockchain Inc. (“COBC” or the “Company”) (TSXV:COBC) is pleased to announce that it has signed a letter of intent for a US$10 million revolving trade finance facility with United Bank for Africa Plc (“UBA”), a leading pan-African financial services group with operations in 20 African countries and offices in three global financial centers of London, Paris and New York. [6] “We are convinced that blockchain will have a huge impact on banks in the future and that trade finance is one of the biggest areas of potential for the technology. [7] TradeIX is set to revolutionize the sector with the “world’s first open platform for trade finance leveraging blockchain technology.” [8] At the recently concluded Blockchain Summit in London, bankers couldn?t help but talk about the digital trade finance platforms they are developing as well as the savings they stand to gain from it. [9] Versara allows users to verify invoices on other blockchains or trade finance platforms. [10] This won’t be the first time that financial institutions have come together to develop a blockchain system to enable trade finance transactions among SMEs. [7] Xavier Laurent, the head of blockchain community at the French financial institution Credit Agricole, stated “Blockchain is good for areas that have resisted digitization,” just like trade finance. [9] Trade finance is an obvious way to use blockchain because it is very paper-based, complex and pricey,” said Rudi Peeters, chief information officer at KBC. [7] Others spoke about the potential of tokenization in trade finance, which had been one aspect of Blockchain that enterprises are only beginning to embrace. [9] The HKMA said it will collaborate with the FSRA to develop innovative FinTech projects, with a specific interest focusing on blockchain utilization in international trade finance. [11] The Hong Kong Monetary Authority ( HKMA ) will be working with Abu Dhabi regulators to develop a blockchain system for cross-border trade finance. [11] Nearly 45% of respondents were either planning or working on a proof-of-concept (POC) or pilot project in the trade finance area, and over one-quarter expected to investigate blockchain for this use case in 2018. [12] Blockchain fatigue may have taken over bankers but at least it has one use case that makes them all giddy about and that is trade finance. [9] Each of these features shows that the benefits of blockchain in trade finance can transfer directly to those corporates that are least linked in to the trade ecosystem today. [13] Almost half of the respondents in the survey plan to spend less than $250,000 on blockchain trade finance initiatives. [12] The long-term plan is to partner with the other seven banks to leverage blockchain technology in offering trade finance over a cloud-based platform. [7] From trade finance consultants to blockchain technology experts, these professionals have teamed up to deliver an interoperable platform that helps SMEs reach their full potential. [10] Enterprises are close to realizing the huge potential of blockchain technology to lower the cost and increase the speed of trade finance transactions. [12] Last year Barclays teamed up with Israeli startup, Wave, to carry out the first trade finance transaction over blockchain technology. [7] This level of activity coupled with Chain Business Insights’ market intelligence suggests that the benefits promised by blockchain technology in the trade finance are within reach, she added. [12]

With the risks involved being quite high, especially in international trade finance, banks have stepped in to mitigate them through various products such as letters of credit and bank guarantees. [4] Decentralized ledgers eliminate the need for trusted third parties such as banks, making trade finance faster and more cost-efficient. [4] Taking the tokenization of trade finance to its logical conclusion, Lee Pruitt, the CEO of ethereum-based startup InstaSupply, said the whole process can be opened up so that banks are no longer required to loan money against invoices. [2] Edwards has also been working closely with Marco Polo, the trade finance network built by R3 and TradeIX, which includes the likes of BNP Paribas, Commerzbank, ING and Standard Chartered Bank. [2] Established in 2002 and with offices in London and Singapore, Exporta Publishing & Events Ltd is the world’s leading trade and trade finance media company, offering information, news, events and services for companies and individuals involved in global trade. [3] Laurent said that while trade finance is global, some governments slow things down and are stuck in the paper trail. [2] Sean Edwards, the head of legal at Sumitomo Mitsui Banking Corporation, posited that there is an additional $1.5 trillion of potential trade finance business that isn’t being done, in places like Africa and parts of Asia. [2] Stepping back, trade finance is big business, worth some $9 trillion worldwide, according to a recent report by the International Chamber of Commerce. [2] Edwards, who is also chairman of the International Trade Finance Association (ITFA), said one the things that’s needed to get those places on board is an efficient know-your-customer (KYC) system to onboard what he called “long tail suppliers,” those most in need of finance. [2] Trade finance is a complex and tedious process that involves a large number of participants. [4] In trade finance, legal uncertainties pose the biggest risk. [4] The authorities took pitches from trade finance service providers in November. [3] Become a part of the most comprehensive contact listing of service providers in the global trade, commodity and export finance markets. [3] “Trade finance is event-driven, punctuated with invoices, purchase orders etc. What you find is the pre-shipment stages are very poorly served; banks are bad at providing finance to early-stage small suppliers,” he said. [2]

Blockchain technology can save resources in the paper-intensive international trade industry, the report by the London-based EU regulatory agency stated. [4] Underscoring the energy around this use case, Varma described, in general terms, a new, fully automated trade platform Citi is building, which he said would combine blockchain with artificial intelligence (AI) and the internet of things (IoT). [2]

We.Trade is being developed by a consortium of nine European founding banks, in conjunction with IBM, to build and host the new digital cloud-based trade finance platform. [5] UBS is currently involved in a blockchain-based global trade finance platform, called Batavia, along with IBM and other banks. [14]

They agreed to collaborate on the development and commercialisation of such a platform based on distributed ledger technology, to help SMEs increase trade across the continent and provide easy access to trade finance. [5] Fiat lenders become a part of the world’s first trade finance platform powered by crypto credit enhancement. [10] TradeIX already has a foothold in the industry, having launched a blockchain-enabled trade finance transaction for DHL. It also has existing partnerships with banks, corporations, and ERP providers. [8] Speaking about tokenization of the trade finance, InstaSupply CEO Lee Pruitt stated that the whole process could be accessed so banks need not loan money against invoices. [9] Troublingly for SMEs, 79% of banks expect trade finance shortfalls to remain the same or worsen over the next year. [13] While trade finance is global, Laurent stated that some governments are not only slowing down the technology but are actually stuck in the paper document. [9] “We are particularly pleased to start a dialogue with FSRA on the opportunity to build a cross-border trade finance network using distributed ledger technology (DLT),” said Nelson Chow, chief FinTech officer of the HKMA. [11] Fortunately for the paper-based trade finance, that is one less obstacle for the current outdated technology. [9] Companies are rightfully cautious about pursuing blockchain-based trade finance solutions. [12] To enable firms with limited resources to access new supply chain and trade finance solutions, R3 and our partners, like Trade IX, have a strategic vision for ERP integration. [13] It will help SMEs initiate new trading relationships as well as provide easy access to trade finance. [5] SMEs are a traditionally underserved market segment in trade finance. [5] Trade finance is an industry that relies heavily on the collective efforts of people involved in the financing process. [10] On average, respondents anticipate a reduction in transaction processing times of some 41%, as well as significant reductions in costs – including lower inventory costs owing to more efficient trade finance processes. [12] Based on a recent report released by the International Chamber of Commerce, trade finance is a $9 trillion worldwide business. [9] Forty-eight trade finance professionals representing companies of all sizes were surveyed between December 2017 and February 2018. [12] COBC will be using the trade finance facility for the purposes of purchasing cobalt concentrates once the terms of have been finalized and a definitive agreement is in place. [6] Unavailability of such opportunities for SMEs has created a gap worth $1.5 trillion in trade finance in both developed and under developed countries. [10]

XinFin blockchain focuses on the infrastructural investing and global trade finance as their key selling point. [15] ” 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 [16] Versara Trade incorporates blockchain technology to advance the trade finance markets by offering a credit enhancement system. [17] ConsenSys, which uses the Ethereum blockchain platform, has already set up consortiums for the oil industry and trade finance, Eykher said. [18]

Batavia, the blockchain-based global trade finance platform that has been jointly developed by a consortium consisting of Bank of Montreal (BMO), CaixaBank, Commerzbank, Erste Group, IBM, and UBS has successfully completed its first live pilot transactions with corporate clients. [19]

“Trade finance is event-driven, punctuated with invoices, purchase orders etc. What you find is the pre-shipment stages are very poorly served; banks are bad at providing finance to early-stage small suppliers.” [9] They thereby fill in the details of their trade transactions, such as delivery date, payments date, etc. If they want to use a bank product, such as guaranteed payment or work capital finance, they could easily request these via the platform at their bank. [5]

“The immediate focus is around SME-to-SME trade, providing interfaces to track and trace, so that the positioning of goods, payments, invoice financing – all elements of the lifecycle in that part of the transaction, are captured on the blockchain. [5] At the Blockchain Innovation Conference in Utrecht early June, Wiebe Draaier, the Rabobank chair said that We.Trade, the European trade platform on blockchain, was ready for production. [5]

All transactions will be administered digital and thanks to the larger transparency of the blockchain platform it will be easier for the connected banks offering finance and guarantees.” [5] A group of banks in Europe have selected IBM to build a blockchain platform that is to be used by small businesses to finance cross-border orders. [7]

They created a for-profit joint venture company (JVCo), to manage and distribute the We.Trade platform, and exploit a licensed blockchain platform for transactions in supply chain trade financing. [5]

“Our core business, which is also what distinguishes Versara Trade from other trade finance platforms, is our Crypto Credit Enhancement service. [17] These and many other Batavia features help to establish the trade finance platform as a solid foundation for a future trade finance ecosystem. [19] The technology is a “disruptive model that has the potential to reshape the future of global trade finance,” Sangha said. [20] It’s a move that is likely to disrupt the future of global trade finance, and to open doors for other ways of leveraging the technology to optimize business.” [21] Nearly 80% of the global trade finance industry is dependent on credit insurance to maintain a healthy trading system. [17] Versara Trade is believed to be the first one providing a solution that will bridge the gap between the trade finance industry and cryptocurrency world by introducing crypto credit enhancement. [17] Mr. Sukumar focused on the lack of access to trade finance or credit financing by the small and medium sized companies that take up over 80% of the exports in developing economies as per the World Trade Organisation (WTO). [15] The trade data and the smart payment automatically triggered by shipment data build an important basis for risk management and financing tools adding value to every supply chain”, said Niko Giesbert, Divisional Board Member, Fixed Income, Currencies & Commodities and Trade Finance & Cash Management, Commerzbank AG. [19] The global trade finance industry has a capital gap of about $1.6 Trillion USD arising from lack of information, outdated logistics systems and high costs. [15] As the white paper of Versara Trade relays, “The global trade finance availability gap is estimated at $1.5 trillion USD and 62% of this gap originates from the Asia Pacific and Americas regions. [17] The current state of global trade finance and infrastructure investing is facing a couple of problems in its quest to matching willing buyers and sellers. [15] Globally, over half of trade finance requests by SMEs are rejected, against just 7 per cent for multinational companies. [15]

The way AIG, and particularly Marilyn’s trade finance team look at blockchain is how it can be used to providing solutions to their clients by creating simpler ecosystems for allowing trade finance to occur. [22] In particular trade finance, an industry with a $10 trillion annual volume, is suitable for blockchain applications, with the help of ‘oracles’ – feeders of information from the offchain world and the internet of things (IoT). [23] Large institutional players or consortiums such as Barclays, IBM, Walmart, and R3 CEV have all developed their own trade finance blockchains. [23] Blockchain Could Transform Trade Finance and Customer Due Diligence: EU Report NullTX Trade finance is a complex and tedious process that involves a large number of participants. [24] This week’s podcast is all about blockchain in trade finance. [22] The reason blockchain and trade finance are natural partners is because much of trade finance is paper driven, fragmented, with different systems even within corporates, and certainly centralised databases that have a single point of failure. [22] Marilyn shares many other insights points in this podcast on utilising blockchain in trade finance. [22] After undergoing development for over a year, the first live trades have occurred on the IBM-powered trade finance blockchain platform, we.trade. [25] Since that time, companies in a wide variety of industries, such as health care, government, food, supply chain management and trade finance, have begun exploring blockchain technology. [26]

In covering the end-to-end process of a trade, Batavia encompasses both the closing of trade agreements and the execution of smart payments, which can be automatically triggered by specified events in the supply chain and recorded in the blockchain. [19] A press release issued by we.trade to PYMNTS said 10 companies executed trades using four banks, all facilitated by we.trade’s infrastructure, which uses IBM’s Blockchain Platform and Hyperledger Fabric technology. [27] The news broke this morning that a group of European banks has completed the first live blockchain-based financial trades across borders via their jointly developed we.trade blockchain platform. [21] A group of nine European banks have revealed that they have completed multiple real-time commercial trades via the blockchain technology. [20] Versara Trade combines blockchain technology with the fiat industry such as to effectively reduce credit risks and give access to SMEs to financial capital. [17] As blockchains gain adoption across various industries, the credit risk will be minimized if not completely done away with in the global trade financing and infrastructural investing to SMEs in developing economies. [15] Home News Coin & Tokens S.V Sukumar discusses XinFin (XDCE) blockchain solutions to Trade Financing and Infrastructural. [15] Trade financing will be one of the direct industries that benefit directly from the increased adoption of blockchains in the overall system. [15]

These transactions signify the first commercially viable open account trades harnessing blockchain technology. [16] Trade agreements between supplier and buyer on blockchain platform completed. [19] “The we.trade platform is a live blockchain based trade platform. [16] Blockchain firm we.trade announced today (July 2) that it has facilitated its first real-time trade transactions on its blockchain platform. [27] This article focuses on the overall use of blockchain technology and the impact it has in solving global trade financing and infrastructural investing problems. [15]

First Pilot Client Transactions Successfully Executed on Batavia Global Trade Finance Platform Global Trade Magazine (blog) Batavia, the blockchain-based global trade finance platform that has been jointly developed by a consortium consisting of Bank of Montreal (BMO), CaixaBank, Commerzbank, Erste Group, IBM, and UBS has successfully completed its first live pilot. [24] The Switzerland-based global financial company is currently involved in the development of a blockchain-based global trade finance platform called Batavia. [28]

Trade Finance Constraints Harmful to SMEs Global Trade Magazine (blog) According to the latest ICC Global Survey – of 251 banks in 91 countries – trade finance remains constrained, with a key reason for the constraints being lenders’ requirements to comply with international regulations. [24] ITFC Paves the Road to Innovation in Islamic Trade Financing CNBCAfrica.com The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org), member of the Islamic Development Bank Group, and the University of Cambridge Institute for Sustainability Leadership (CISL), an academic institution within the University. [24] Ardshinbank partners with IIB to support trade finance in Armenia Information-Analytic Agency NEWS.am The Bank has joined the International Investment Bank’s Trade Finance Support Programme (TFSP) in March 2018. [24] With the risks involved being quite high, especially in international trade finance, banks have stepped in to mitigate them through various products such as. [24] The letter of credit transaction in trade finance is a relatively neglected area when it comes to digitization, which is why HSBC bank chose this tran. [29] Simply put, trade finance is the facilitation by banks, financial institutions and other funders to support sellers selling goods and services and buyers buying them. [22] Even within trade finance you have lots of corporates that use multiple banks to do lots of their different trade finance around the globe with lots of different systems for each jurisdiction and it’s very difficult to merge those. [22] The Company is building a blockchain-based solution to optimize trade finance processes and make the supply chain more efficient for international trade. [30] If your business is Trade Shows, Customs, Trade Finance, Inspection, Insurance, Trade Laws, Trade Solutions, Translation or involves in foreign trade supply chain, you will want to be part of the world largest international B2B trade community. [24]

As a special treat I was joined by Marilyn Blattner-Hoyle, Head of Supply Chain and Trade Finance at AIG as my co-host. [22] In October 2017, AIG launched its first blockchain-enabled trade finance system alongside Standard Chartered and TradeIX. The proposition is essentially based around a receivables finance deal where a large multinational corporate logistics client wanted to sell its receivalbes to Standard Chartered to give its core customers more time to pay. [22] There are requirements for following different stages of an invoice life cycle and so there are lots of different data points that are super key for trade finance and so by being able to optimize all of those data points in a centralized place, where there’s essentially one source of the truth; that’s a game changer for the industry. [22] That’s something that the trade finance industry doesn’t have right now and if it can be solved you can increase the trust between the parties. [22] There are many different ways to do trade finance whether with receivables, payables, loans or traditional trade finance with instruments like letters of credit. [22]

Companies like Wave and Tradle are using blockchain to build smarter asset management in trade finance, providing comprehensive, three-dimensional views of transactions that are traditionally limited to those individuals familiar with the paper-trail of a transaction. [31] Trade Finance – Service Marketing – Blockchain ICO Consulting Promo by After-Motion-Templates VideoHive no longer actively supports this version of Internet Explorer. [32] “TradeIX is disrupting the market with the world’s first open platform for trade finance leveraging blockchain technology. [33]

Major European Banks Complete Live Trades on IBM Blockchain You are using an outdated browser. [25] The European Banking Authority (EBA), which is one of the main regulatory agencies of the European Union, has recently warned European banks about the risks of using distributed ledger technology (blockchain) on trading and finances. [34]

The we.trade digital trade solution, which has been developed using the Hyperledger Fabric blockchain technology, leverages smart contracts making it possible for event-based payments to be made automatically. [25] Earlier today, Nordea announced that blockchain platform we.trade has performed its first trades. [35]

China has options beyond tariffs in trade war Finance and Commerce Beijing might suffer losses if it sold enough to influence U.S. debt financing costs — but such sales might become necessary. [24]

SV Sukumar discusses XinFin (XDCE) blockchain solutions to Trade Financing and Infrastructural Investing The Crypto Globalist This article focuses on the overall use of blockchain technology and the impact it has in solving global trade financing and infrastructural investing problems. [24] These are the first such trade transactions employing blockchain technology to be considered commercially viable. [25]

Founded in 2016, TradeIX is on a mission to rewiring trade finance by providing the most connected and secure platform infrastructure for corporates, banks, asset managers, B2B networks and value-added service providers. [33] The main reasons for that are the inability to access the international markets and difficulties to acquire trade finance solutions (like a letter of credit and banking guarantee). [36] “TradeIX offers a great solution for trade finance that truly enables clients to become more efficient and transparent. [33] With its smart-contract and digital token containing Blockchain-based ecosystem and unique functionalities, ModulTrade aims to democratize the trade finance industry. [36] We are particularly pleased to start a dialogue with FSRA on the opportunity to build a cross-border trade finance network using distributed ledger technology.” [37] A group of major European banks, including Deutsche Bank, HSBC and Societe Generale, has completed the first live blockchain-based financial trades over their jointly developed we.trade blockchain platform. [38] According to an announcement Tuesday by we.trade, ten companies executed seven trades over the past five days, via four banks, signifying the first commercially viable open account trades, harnessing blockchain technology. [38]

With its blockchain token, it offers access to world-wide trade to any business with a smartphone. [36] MT Marke t blockchain based marketplace where any small business or individual can trade internationally, efficiently, and securely. [36] With blockchain, it’s conceptually the same thing, except now you can trade with anybody who’s on the same blockchain. [39] We.trade said its platform, developed on the IBM Blockchain Platform and powered by Hyperledger Fabric, blends smart contracts with a simple user interface, to provide a more efficient and cost-effective way to trade internationally. [38] In October 2017, the HKMA and the Monetary Authority of Singapore announced they would be working together to use a blockchain platform to combat trade fraud. [37] It is a hot topic at most technology, government and industry trade shows, with a survey from the World Economic Forum suggesting that 10% of global GDP will be stored on blockchain technology within 10 years. [31]

When are blockchain tokens a security and when are they something other than a security? The crypto community was set abuzz when William Hinman, director of the Securities and Exchange Commision’s Division of Corporation Finance, delivered a speech on cryptocurrencies and offered additional detail on the SEC staff’s perspective on the securities law treatment of digital asset transactions. [39] “The we.trade platform is a live, blockchain based trade platform,” said Roberto Mancone, Chief Operating Officer at we.trade, in the statement. [38]

POSSIBLY USEFUL

According to Bain & Company, one of the best upgrades banks can make is to begin using Distributed Ledger Technology such as blockchain. [1] The aim is to involve other jurisdictions on the GTCN as soon as possible, and both authorities say they have had discussions with banks, governments and other blockchain consortia about joining. [3]

Sydney-based blockchain company EZToken has announced it’s global cryptocurrency loyalty program, EZToken rewards. [4] With transactions recorded on the blockchain being immutable, their integrity can be verified and an audit trail can be created. [4] “We will have some jurisdictions where all transactions are going on the blockchain,” Laurent said. [2]

CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. [2] By contrast, in other business lines, bankers have their heads down these days, trying to live up to the hyped promise of blockchain optimization, all while having to deal with the thorny business of integration with their legacy systems. [2] The report also recognized the great untapped potential the blockchain has to improve data verification in the customer due diligence process. [4] There are currently a number of leading financial institutions that are trialing the concept of sharing verified customers’ data over the blockchain, which will make the process more convenient. [4] “Blockchain is good for areas that have resisted digitization,” said Xavier Laurent, the head of blockchain community at the French financial institution Credit Agricole. [2]

This industry is long overdue for a blockchain revolution, according to a report by the European Banking Authority. [4] While cryptocurrencies have developed a bad reputation by virtue of being connected to criminal activities, the EU report stated that blockchain tech could significantly assist in efforts against terrorist financing and money laundering. [4]

Perhaps most notably, Amit Varma, the CTO of Citibank, was unusually vocal and specific in describing the savings his institution expects the technology to bring to the chain of players involved in each stage of global trade, from manufacturing to shipping to distribution. [2] The TFP will feed into the Global Trade Connectivity Network (GTCN), another blockchain-based solution being built in collaboration with the Monetary Authority of Singapore (MAS). [3]

While the degree with which banks are threatened by the rise of cryptocurrencies is still open to debate, the Bain & Company report suggests that these new technologies puts imminent pressure on banks to redefine their roles in finance trading. [1] Some banks have already began to make the transition into blockchain technology. [1] Blockchain technology also has huge potential in digital identity solutions, the report stated. [4] The transparency that is part of the appeal of blockchain technology could also pose challenges, as in cases where personal information is exposed on the public ledger. [4]

This risk is magnified when the institutions that use blockchain platforms are from different jurisdictions and adhere to different AML and KYC laws. [4] “We are moving towards real time, to a point where the blockchain platform will trigger a payment when goods are received.” [2]

He was sharing the stage with Serene Ho, director of Singapore’s National Trade Platform, discussing the collaborative work on the GTCN, which is set to go live at the start of 2019. [3]

Originally known as the Digital Trade Chain, the group later decided to rename the platform into We.Trade. [5] The We.Trade digital platform will facilitate international trade for SMEs. [5]

The banks plan to expand the platform currently in use by KBC to include inter-continental shipping routes even though the short-term goal is to enhance its capability in handling European trade routes. [7] The highly scalable platform can support customers from all banks in the consortium and thanks to its end-to-end transparency helps equip SMEs to initiate trade with new partners domestically or in other European markets. [5]

The platform will address exporter’s risks across border trades while enabling financing and the mentoring of transactions. [7] “With We.Trade our clients will run less risks in international trade. [5] If accepted widely by SMEs, We.Trade may enable a fundamental boost to international trade. [5] We.Trade facilitates (international) trade by tackling the trust issue in relation to (more) distant counterparties. [5]

The solution is anticipated to help open new revenue streams for banks and initiate new trading relationships for SMEs and further trade growth. [5] Other “member” banks may join in order to create standardisation, collaboration and consensus across banks to support trade. [5]

COBC is the first mining and mineral trade company set up specifically to procure cobalt in compliance with the Organisation for Economic Co-operation and Development (OECD) due diligence framework. [6]

COBC’s platform is expected to be the world’s first operational blockchain mineral provenance system for cobalt, ensuring transparency that any cobalt traded through COBC is ethically-sourced. [6] The platform will be powered by Hyperledger Fabric as an open source blockchain framework and harnesses both DLT and smart contracts. [5] The platform, according to Varma, would integrate Blockchain with artificial intelligence (AI) and the internet of things (IoT). [9] We?re not, for example, on the platform itself bringing shipping agencies onto the blockchain – it’s done through APIs. [5] COBC’s platform is based on an autonomous due diligence (ADD) protocol, and a custom Hyperledger/Ethereum blockchain. [6] In addition to that, Versara is able to interact with multiple blockchains, which in turn attracts more people towards the platform. [10] Simply put, the platform can accept cryptocurrencies on their native blockchains, even if they exist on permissioned blockchains. [10]

Swiss financial services giant UBS Group may not be a fan of bitcoin but CEO Sergio Ermotti believes blockchain, the technology behind cryptocurrencies, is “definitely an opportunity” in the long term. [14] “There are many issues to resolve before blockchain can be widely adopted in supply chains, and companies are wise to take step-by-step approach when developing the technology,” said DeCovny. [12] Dave Miller He is passionate about technology and believes that blockchain will disrupt many industries. [10]

Payments will be activated automatically through these self – executing contracts when certain conditions of the contract – on the blockchain – such as the delivery of goods, have been met and validated by market participants, whereby the buyer’s bank transfers the funds to the vendor’s bank. [5] Early this year the nine foundation banks took a crucial step to making blockchain available to their corporate clients. [5] They will have their own node on the blockchain and will be able to give their clients access to We.Trade. [5] Rabobank’s Blockchain Lead Chris Huls explained the details of We.Trade. [5]

Owing to the transparency provided by blockchain, lenders can easily access previous transaction records before loaning their assets. [10] Citibank CTO Amit Varma openly explained the savings his company and other industry players are bound to receive from Blockchain tech. [9] Cobalt Blockchain Inc. (TSXV:COBC) is a Canadian resource company expanding its exploration and development business to include cobalt assets in the Democratic Republic of the Congo (DRC). [6]

The use of tokens to represent assets on a Blockchain could ease up liquidity, Laurent said. [9] Blockchain will finally shed light on the deepest tiers of the supply chain. [13] Compared to other industries, bankers had been trying to live up to the overrated promise of Blockchain optimization, along with its complex integration to their existing systems. [9] Blockchain is “definitely an opportunity” in the long term, says UBS Group CEO Sergio Ermotti. [14] Interested in learning more about blockchain deep tier financing? Check out this panel from Coindesk Consensus 2018 (Day 2, Session 23). [13] “Shipments monitored using IoT devices can give everyone on the blockchain an idea of where the shipment is,” he stated. [9]

The banks can also link additional services to the platform, such as guaranteed payment or finance through payment deferral.? [5] Article published in the Finance and Technology series of Financial Nigeria magazine, June 2018 edition. [12] While Nike’s first few levels of suppliers are able to access finance at favorable rates, the suppliers of those suppliers may not. [13] One real world example is Project Marco Polo, an open account finance solution being built on Corda. [13] With initiatives like Marco Polo, the playing field can be leveled, equalizing trading finance for all. [13] Versara has secured three major deals with publicly traded companies: Hexindai (NASDAQ: HX), Dianniu Finance (NASDAQ: DNJR), and China Lending Corp (NASDAQ: CLDC). [10] Supply chain finance today accesses only the top tier of suppliers. [13] Creating the conditions for finance to be injected at different stages of the supply chain. [13] What even is deep tier finance? It’s supply chain finance that reaches into enterprises at the beginning of a complex supply chain. [13]

When the order is accepted, a smart contract is drawn up between the trade partners, setting out the payment terms. [5] In the present trade chains there are a large number of obstacles that should be tackled, such as susceptible to fraud, high paper load, error prone, unnecessary high costs and lack of transparency. [5] In this regard, Sumitomo Mitsui Banking Corporation head of legal Sean Edwards speculated that there is an additional $1.5 trillion trade potential waiting to be explored in areas like Africa and parts of Asia. [9] Somebody is going to announce something that then triggers a more serious issue,” he said, stressing trade risk “could come from any side, Europe, U.S., China; you name it.” [14]

We.trade is a digital platform for securely managing, tracking and settling trade transactions between SMEs in one place. [5] SMEs will have access to an “easy-to-use” platform that provides a consolidated view of trade transactions. [5] The platform will increase access to financing by infusing cross-border trade transactions with accountability and transparency. [5] The platform is designed to simplify and facilitate domestic and cross-border trade for small and medium enterprises in Europe, while helping to increase overall trade transaction transparency. [5]

This thought process led to the creation of the world’s first trade financing platform utilizing crypto asset credit enhancement. [10] Also a global trade platform to which other partners in the trade supply chain such as transport firms, insurance companies, shippers, freight forwarders, credit organisations and customs authorities will have access. [5]

We.Trade makes trade transactions entirely transparent, which helps assure all parties that everyone involved in the trade is reliable. [5] The company was formed to meet the financing gaps hampering domestic and cross-border trade for small and medium enterprises in Europe, while helping to increase overall trade transaction transparency. [5] International trade transactions can be very problematic for SMEs and small wholesale clients. [5] We.Transfer, that will run in the IBM Cloud, is designed to connect all parties involved in a trade transaction in one place, both online and via mobile devices (for example via tablets and smart phones). [5]

Last year, Versara Trade pondered over the lack of trade financing solutions available for small and medium-sized enterprises (SMEs). [10]

Following the tenets of blockchain technology, the TradeIX platform is decentralized, giving control to each client. [8] That would mean that We.Trade will be the first major commercialised blockchain platform in the financial world, making a milestone in the practical adoption of blockchain in the financial industry. [5] HSBC reportedly issued a letter of credit for U.S. food and agriculture firm Cargill to the Dutch bank ING using a blockchain platform called Corda. [12] SMEs will be able to use the protracted blockchain platform to track orders and use smart contracts to trigger payments on certain events. [7]

When fintech companies adopt blockchain technology, they are able to reduce costs and extend financial solutions to companies that are otherwise overlooked. [10] R3 is also currently tackling the ERP integration challenge with Commerzbank, recently completing a successful end-to-end integration between SAP S/4HANA business processes and R3’s Corda blockchain platform. [13]

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. [16] IBM GBS Blockchain leader Parm Sangha noted that we.trade is moving out of pilot phase and into working solutions. [27] Blockchain works as a huge, decentralised ledger of transactions, which is verified and shared by a global computer network and therefore virtually tamper-proof. [18] Alexander Dietlmeier, Head of Group Treasury at AUDI AG: “Blockchain is an important future technology for Audi. [19] Built on IBM’s Blockchain Platform and its Hyperledger Fabric technology, we.trade was established by Deutsche Bank, HSBC, KBC, Natixis, Nordea, Rabobank, Santander, SociGale and UniCredit, in a bid to boost the efficiency of cross-border financial transactions. [21] The transactions were completed on the We.Trade blockchain platform through four banks. [20]

We.trade is the culmination of a joint-venture between nine banks in Europe, first announced last year, with a focus on cross-border corporate trade and transacting. [27] 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 trade ecosystem. [16] Over the last 5 days, 10 companies have executed trades, via 4 banks. [16] Many banks and companies are looking for a more efficient and cost-effective way to trade internationally. [16]

Amit Varma, the CTO of Citibank, was unusually vocal and specific in describing the savings his institution expects the technology to bring to the chain of players involved in each stage of global trade, from manufacturing to shipping to distribution. [40] In another statement, Ahsan said that three of HSBC’s clients completed trades last week using the platform. [27] ” These transactions are a great example of how HSBC is innovating to meet our clients? needs. HSBC is at the forefront of developments to make trade faster, safer and cheaper for our clients. [16]

Our work with we.trade is another example of how we’re actively leading the industry to digitize trade and trade finance.” [27] Whether you?re an insurance buyer, provider or simply looking to learn more about political risk and trade credit insurance as a risk management tool, this event is a unique opportunity to network with senior decision makers and discuss the key issues impacting the private insurance industry. [40] According to the white paper of Versara Trade, it will benefit the small and medium-sized businesses by “leveraging crypto-assets to enhance credit and mitigate risk for credit providers.” [17] “Minerac will allow stakeholders to securely exchange critical trade documents, such as bills of lading and letters of credit, via the use of smart contracts,” the statement said. [18]

Versara Trade was conceptualized in 2017 with the idea of developing such a business model. [17] The intimate, regional event returns for another year, bringing together business partners to discuss inter-African trade and the South African market. [40]

Join us in the city that never sleeps for the second edition of this unique conference, focusing on the exciting changes occurring across the trade, supply chain, and treasury sectors. [40] Roberto continued, ” This live trade is a massive achievement for all involved. [16] “HSBC is at the forefront of developments to make trade faster, safer and cheaper for our clients. [27]

“Thus, the industry is primed for blockchain disruption to simplify the trading process, (and) increase efficiency and profitability.” [18] Swiss-based Open Mineral said in a statement on Monday it was joining forces with U.S. blockchain start-up ConsenSys to establish Minerac, aiming to make mineral trading and supply chains more efficient. [18]

“Blockchain holds huge potential to disrupt multiple industries by improvising business processes as a mediator, I will connect the two parallels of blockchain and business. [15] Mr. Sukumar acts in the position of blockchain consultant and advisor to XinFin FinTech Ltd. using his vast experience and networks to unveil the hybrid blockchain to its vast user base and international merchants. [15] The intertwining of blockchains and cryptocurrencies makes some governments fear that the use of the latter in illegal activities or devaluation of their own currencies. [15] The cumulative effects of these developments and will be the entrance of increased numbers of investors into the crypto market, leading to the maturation of the blockchain industry as a whole.” [21]

The we.trade solution, built on the IBM Blockchain Platform, powered by Hyperledger Fabric, offers customers access to a simple user-interface, leveraging innovative Smart Contracts and opens up potential new trading opportunities. [16] Tags: blockchain, hyperledger fabric, IBM Blockchain Platform, We.Trade loading. [20]

“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,” said Parm Sangha, GBS Blockchain Leader, IBM [16] According to Gianluca Giancola, co-founder & head of UX and design at blockchain-powered loyalty ecosystem qiibee, this venture by We.Trade “demonstrates not only the commercial potential of blockchain technology in a corporate setting,” but shows how “financial institutions run more efficiently and with greater transparency.” [20] “This move by traditional banks demonstrates not only the commercial potential of blockchain technology in a corporate setting, but also highlights how it can help financial institutions to run more efficiently and with greater transparency. [21] “The fact that mainstream financial institutions, along with a highly reputable company such as IBM, have integrated hyperledger technologies to offer cross-border transfers on the blockchain as a service to their customers highlights their recognition of the massive potential found in blockchain technology. [21]

Its platform, said Sangha, “demonstrated the power of blockchain technology in an enterprise setting.” [27] As the potential of cryptocurrencies and blockchain technology is being realized worldwide, many companies are investing to incorporate the technology within their systems. [17] There is little doubt that blockchain technology will one day transform banking services but disrupting an entire industry is no mean feat. [21]

Here at Fintech Finance, we work with renowned executives in the industry to provide key decision-makers globally within leading financial services organizations with reliable and accurate intelligence on emerging trends and breakthrough technologies, helping them to make informed decisions. [16] At Fintech Finance, we produce monthly video episodes looking at range of topics within financial services, as well as a constant stream of news plus coverage from attending some of the most prominent events within the sector. [16]

The strain faced by these small businesses to access finance is typically straining the economy. [15]

It has the potential to revolutionize the client experience by providing a digital and automated way of arranging, securing and financing international trade transactions. [19] According to We.Trade, seven trade transactions have been completed by 10 companies across five countries. [20]

“The we.trade platform is a live, blockchain-based trade platform. [27]

These transactions mark an important step in establishing Batavia as an open ecosystem that is built on the IBM Blockchain Platform. [19] Smart payments automatically triggered by pre-defined events on the IBM blockchain platform. [19] BATAVIA: It’s an open ecosystem built on the IBM Blockchain Platform. [19]

Full transparency among all involved trading parties, helping to avoid errors, on blockchain platform. [19]

The blockchain technology endorsing transparency, privacy and security has made its way towards many institutions and even some governments. [17]

“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. [25] Fusion LenderComm, a syndicated lending platform and GuildOne’s Royalty Ledger, a blockchain solution for the oil and gas sector, both utilise Corda. [22] This project has been running for 1.5 years and to reach the stage of running live DLT (Distributed Ledger Technology) blockchain transactions across Europe is quite important and a big breakthrough.” [35] Marilyn, approaches blockchain as a layman, so the way she looks at it, is blockchain is a form of distributed ledger technology, which simply put is a distributed database or ledger that can record and track transactions in a secure environment with optimal transparency. [22] Blockchain is a distributed ledger technology, first popularised through the cryptocurrency Bitcoin. [23] By using blockchain or in fact even other forms of technology, such as even API’s to be able to integrate legacy systems with something like a distributed ledger, that opens up opportunities that don’t mean that you have to make full scale adoption a requirement now. [22] The decentralized blockchain distributed ledger cryptocurrency technology and applications are starting to gain. [34] In Ryan’s opinion the biggest barrier institutions have with blockchain isn?t over the technology but around regulation and compliance. [22] To learn more about this pilot we had the great pleasure of having Marco Boni, Group Head of Operational Excellence & Transformation at Generali, who is “genetically in love with technology”, join us for a chat on Insureblocks to take us through the journey they went through in building this Italian commercial insurance blockchain pilot. [22] Instead of blockchain, Marco preferred to define what is DLT (distributed ledger technology). [22] Banks sometimes didn?t know which company’s books held bad mortgages, and a blockchain is essentially a single time-stamped ledger transparent to all its users. [26] These banks will be provided with their own node on the blockchain thus allowing them to offer their clients access to the we.trade platform. [25] A 30 year career at senior director level at Citi, Deutsche Bank and Traiana has set Andrew Coyne’s new Cobalt DL venture as the first blockchain entry into post-trade settlement. [35] JPMorgan Chase & Co. and the National Bank of Canada (NBC) announced today that they tested a debt insurance simulation on a new blockchain platfo. [29]

Developed by Nordea in a European-wide collaboration with eight other banks, the aim of we.trade is to create a common platform which enables companies, from SMEs to large corporates, to trade in a fast, easy and transparent way. [35] The bank said the platform was launched today with pilot customers making live trades. [35] Nordea reports first trades on blockchain-based platform – FinanceFeeds and tags, as close as possible to the opening tag. [35]

A lot of the pain points that insurers are facing are very similar to the ones of banks in terms of identity, KYC (know your customer), AML (anti-money laundering), reference data issues, trade life cycle and codifying contracts. [22] Since those days R3 has rapidly grown from the original nine banks to now over 200 banks, financial institutions, regulations and trade associations. [22] This choice has certainly paid off as there are currently over 200 financial institutions, regulators, insurers, trade associations, professional services firms and ISVs that are working on Corda. [22]

The consortium, which initially went by the name of Digital Trade Chain before a rebranding exercise, was formed in 2017 with a view of closing the financing gaps that hamper both cross-border and domestic trade with regards to small and medium-scale enterprises located in Europe. [25] Traditionally SMEs have faced a three-way trade off between bearing the risk, purchasing complex and expensive coverage or even turning down a business opportunity. [35] Some of these initiatives have looked to get more shared real time visibility of the risk, which means that instead of using static demographic data you can follow the risk in real time such as where are the vessels, where do they trade and at what ports do they call. [22]

The goal is to fully automate the trading process and seamlessly connect the entire trade ecosystem. [35] “The we.trade platform creates trust in the trading system and reduces the catch-22 that occurs at the beginning of a trade. [35]

It’s not just about digitalising existing trade processes or part of the existing supply chain, it’s about totally changing the set-up of how we conduct our trade. [35] It involved carrying out the full cycle of trades, including the automatic generation of agreements and execution of the payments. [28]

All back and forth communication on the DLT platform is recorded in a blockchain structure allowing the underwriter and account executive to keep track of all the changes that are done within the negotiation. [22] Maersk is the pilot customer of a new marine blockchain insurance platform called Insurwave that was launched by EY, Guardtime, Microsoft, Willis Tower Watson, XL Catlin, MS Amlin and ACORD. [22] Paul Brody, blockchain global innovation leader at EY, which helped create the product, said it was “a blockchain-based tool for enabling companies to execute digital contracts with each other — and very specifically, the primary focus is on digital media content, rights and royalties around everything from video games to media and entertainment — music, movies, etc.” [26] A blockchain network was just announced for Microsoft’s Xbox that will enable companies to execute digital contracts with one another, focusing on digital media content, rights and royalties. [26]

Brian Behlendorf, executive director of Hyperledger, an open source blockchains project managed by the Linux Foundation, says companies that work in transactions or that serve as a system of record for an industry will have to adapt. [26] The issues with centralized databases, legacy systems, and fragmented paper driven solutions and even with fraud make blockchain a great potential solution for this industry. [22] If blockchain was the right solution to do that? Whether it was possible to innovate the insurance industry and finally to dig into the concept of smart contracts if they would work in an insurance concept? The PoC was completed by July of last year with an affirmative conclusion to the above questions. [22] The Company provides investors access to a basket of direct and indirect holdings within the blockchain space, managed by a team of industry pioneers and early adopters of all major cryptocurrencies. [30] The Company is focused on streamlining the currently arduous, lengthy, and complicated process that interested investors must undergo in order to gain exposure to the cryptocurrency space, with a view to becoming the first vertically-integrated originator and manager of top tier blockchains and digital currencies. [30] Forward-looking information includes, but is not limited to the Company’s goal of streamlining the current arduous, lengthy and complicated process that interested investors need to undergo in order to gain exposure to the cryptocurrency space with a view to becoming the first vertically integrated originator and manager of top-tier blockchains and digital currencies. [30]

Small note to remember is that blockchain is a type of DLT. DLT is a technology that allows the storage of information in a distributed way. [22] Blockchain was chosen as a technology because the idea was to set up something that could scale to a much larger ecosystem with other corporates, buyers and insurers. [22] For Lars, blockchain is a technology to share real time data. [22]

The shipping company A.P. Moller-Maersk will start a joint venture with IBM this year to use a blockchain instead of the masses of paper that it now employs to manage its supply chain. [26] By year’s end, a joint venture between Maersk and IBM will use a blockchain instead of masses of paper to manage the movement of goods on ships from suppliers to consumers. [26]

For instance, a neglected regulatory solution would be to separate usage and consensus generation on blockchains, so that sellers cannot use the consensus-generating information for the purpose of sustaining collusion. [23] Ryan is spearheading North American Business Development and Insurance for R3, focused on building and empowering blockchain solution for her clients. [22] Mid last month a legal entity for the we.trade platform was created in order to allow the partners in the consortium to offer the blockchain solution to their clients. [25] On the 25th of May, Maersk, alongside your partners: EY, Guardtime, Microsoft, Willis Towers Watson, XL Catlin, MS Amlin and ACORD, all announced the launch of Insurwave, the world’s first blockchain solution for marine insurance. [22] R3, which featured in one of our previous episodes ( R3 – The blockchain banking consortium ) started in 2015 as a consortium of financial institutions that joined forces to test blockchain solutions. [22] Marco shares many other fascinating insights and some top tips for launching a blockchain / DLT solution. [22]

VANCOUVER, British Columbia, July 02, 2018 (GLOBE NEWSWIRE) — GLOBAL BLOCKCHAIN TECHNOLOGIES CORP. (CSE:BLOC) ( BLOC.CN ) (CSE:BLOC.CNX) ( BWSP.F ) ( BLKCF ) (“BLOC” or the “Company”) acknowledges that its investors may find the performance of cryptocurrency assets and the drop in BLOC’s share price to be alarming. [30] In Insureblocks? episode 2 B3i, a question we had discussed with Greg Crow, Global Head of Architecture at XL Catlin, was should an insurance company join a consortium like B3i or try to build its own blockchain PoCs? Ryan agreed with Greg’s answer that you should do both. [22] Global Blockchain remains positioned to drive healthy revenues with its current developments in the blockchain ecosystem. [30]

Laser is a hard fork of Ethereum, and it has features to include anonymity, near-instant transactions, and blockchain interoperability. [30] Maersk was approached by Ernst & Young (EY) who invited Maersk to become the pilot customer on a proof of concept (PoC) to use blockchain to remove the inefficiencies the industry has experienced. [22] Blockchain provides insurers with the opportunity to cut some of that transactional costs and to be able to use the capital more accurately as they will have more data on the risk. [22] Cao, S, L W Cong, and B Yang (2018), “Auditing and Blockchains: Private Information, Mis-statement Risk, and Auditor Independence”, work in progress. [23] Blockchains, while holding great potential in mitigating information asymmetry and encouraging entry, can also lead to greater collusive behaviour. [23] Outside of the business environment Paul also noted that blockchain could be used for identity management and counter party management (eg. audit trail of provenance) in a country like India where proof of identity and of ownership is important where most information is stored on paper. [22] Noting that one of the core advantages of blockchains is decentralization — the ability for a network to decide by group consensus, not top-down authority — Mr. Furlonger said: “Many of the enterprise initiatives are heavily centralized replatforming initiatives, not reimagining the way business can be conducted. [26] Initially as a group of 5, then 15 and then more insurance companies sharing their experience of blockchain. [22] Using the blockchain to automate buying and selling of storage space from enterprise IT users, Stratus will help companies liquidate their excess storage space by renting it out to other enterprise users at prices about 50% lower than most cloud providers. [30] Using blockchain and smart contracts, the set of possible dynamic equilibria expands. [23] Blockchains, using decentralised consensus, make it possible for agents to write smart contracts with contingencies on delivery outcomes and automate contingent transfers. [23] Many large users faced technical, regulatory and compliance issues that prevented them from using blockchain internally at scale. [22] Paul was stationed in India’s tech savy city, Bangalore. 3 years ago he tried to envisage the possibility of using blockchain for reinsurance processes by testing out its concept with his front line staff. [22]

The goal is for the blockchain to also handle payments and for it to be useful to anyone dealing with intellectual property or digital asset rights, including authors, songwriters and developers, he said. [26] The difference between DLT (distributed digital ledger) and blockchain. [22] B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. [34]

Welcome to the first episode of our new News Flash series, where we share the latest developments in the blockchain space, straight off the press. [22] The documents finishes by presenting two specific problems that could arise from the use of blockchain. [34] The operational benefits the use of the blockchain improves the transparency of the data in the invoice lifecycle which makes it easier to track eligibility of the invoices, insurance limits, premiums / margin and all the data driven aspects of an invoice being funded and insured. [22]

The blockchain is in place across the shipping company A. P. Moller-Maersk’s vessels. [26] Acting in a silo by deploying a blockchain internally into a company is possible and it will lead to some efficiencies and streamline. [22]

B3i, the blockchain insurance industry initiative, often comes up in episodes on Insureblocks. [22] R3 quick realised that for them to work alongside the insurance industry on a blockchain they needed a set of standard. [22] Corda, the blockchain created by R3, is the only blockchain that has been designed and built specifically for business. [22] Early 2017 they built a blockchain prototype that became a minimum viable product (MVP) developed on IBM Hyperledger Fabric for a reinsurance application. [22] In its most simplest form, blockchain is about getting to reach consensus on a replicated shared database across multiple sites / entities / institutions with no central institution. [22] When the original blockchain arrived in 2009, it was a ledger for Bitcoins. [26] Being able to reach consensus before anything is recorded onto the ledger and having an immutable record knowing the provenance of assets cross jurisdiction is what blockchain can offer. [22]

We argue that the technology’s various incarnations share a core functionality in providing decentralised consensus, but there is afundamental tension between decentralised consensus and information distribution in blockchain applications. [23] Essentially, blockchain aggregate information from many relevant parties, reaching a consensus that can be accepted by the community. [23] With the help of fast-developing real-time communication technologies, blockchains can mitigate individual misreporting incentives, allowing for better information aggregation and more efficient contracting. [23] Blockchain applications feature a fundamental tension between decentralised consensus and information distribution. [23] The natural next step would be to bring mechanism and information design into the study of blockchain economics. [23] The design of the blockchain can have additional profound economic implications on consensus generation, industrial organisation, smart contract design, and anti-trust policy. [23] Additional initiatives have been towards automating underwriting through blockchain smart contracts. [22]

We were very excited to hear about the launch of Generali’s quotation process blockchain pilot. [22] This is a description of the state of the world that is universally accepted and acted upon by all agents. 4 Analysing the process of consensus generation may emphasise the tradeoffs in decentralisation and incentive provision (for example, Kroll et al. 2013, Saleh 2018, and Biais et al. 2018), or study market organisations, typically drawing evidence from the Bitcoin blockchain. [23] This becomes especially relevant for permissioned blockchains with powerful financial institutions as exclusive members (Kaminska 2015). [23] If some financial institutions had used blockchains before the last recession, we may not have had one. [26]

“We are mostly interested in having traditional financial assets issued on our platform, leveraging blockchain technology and ultimately being able to be traded by any trader within our ecosystem whether that is an institution or retail trader [35] Such a blockchain technology could bring all the brokers, reinsurers and primaries on a platform for working together and sharing data to make their lives easier. [22]

EBA continues its report stating that fintech companies often do not warn the banks on these risks and the report also states that smart contract systems and blockchain technology can have an enormous impact on trading and customer due diligence procedures that is not yet fully realized by many companies. [34] The use of blockchain technology enables the automatic generation of payment instructions to be submitted to the debtor’s bank as soon as contractual conditions are met. [35] The nine founding banks are equal shareholders in the JV which will own, manage and well as distribute the we.trade blockchain platform. [25] To make the we.trade blockchain platform a reality all the internal procedures and governance of the banks were met. [25]

BBVA bank announced today that it has closed a $90 million corporate loan deal with their technology partner, Indra, via blockchain technology. [29] Using blockchain technology of this kind and scaling it up to this level is a real first. [35] Blockchain technology provides decentralised consensus, which potentially enlarges the contracting space using tamper-proof smart contracts. [23] Because of these factors, Corda was chosen as the new blockchain technology provider that B3i would be using. [22]

With blockchain technology these customers will be able to take their insurance data from one company to another. [22] Malinova, K, and A Park (2018), “Market Design for Trading with Blockchain Technology”, working paper. [23] The applications of blockchain technology and smart contracts are broad. [23]

In this exciting episode we discuss not only how blockchain can help build a digital network of trust but also hear about why B3i chose to replace the IBM Hyperledger Fabric with R3’s Corda to become their new blockchain platform. [22] In addition to insurance, R3 is interacting with other industries such as supply chain which is starting to build on the R3, Corda blockchain platform. [22]

Blockchain’s future in banking is bright, but right now, the industry is not prepared to take advantage of what the technology offers, according. [29]

What you need to know on Wall Street today Markets Insider Welcome to Finance Insider, Business Insider’s summary of the top stories of the past 24 hours. [24] During one of Paul’s last role at Swiss Re, he was setting up a finance service centre in India. [22]

Through four banks, 10 firms were able to execute 7 trade transactions across 5 countries in the last 5 days. [25] The first global trade transaction, shipping butter and cheese between Ornua and Seychelles, was completed in 2016. [23]

RANKED SELECTED SOURCES(40 source documents arranged by frequency of occurrence in the above report)

1. (57) Corda Insureblocks blockchain & smart contracts in insurance

2. (38) We.Trade on blockchain: Yes We Can! | Financial IT

3. (20) Blockchain, smart contracts, and information | VOX, CEPR Policy Portal

4. (17) Blockchain Could Transform Trade Finance and Customer Due Diligence: EU Report | NullTX

5. (16) Bankers Tout Trade Finance as the Sweet Spot for Blockchain – CoinDesk

6. (15) Bankers Agree That Trade Finance Goes Well with Blockchain – CoinWire

7. (13) Versara Trade Brings Blockchain into the Trade Finance Market – AMBCrypto

8. (13) S.V Sukumar discusses XinFin (XDCE) blockchain solutions to Trade Financing and Infrastructural Investing | The Crypto Globalist

9. (13) we.trade blockchain platform completes multiple real-time customer transactions | Fintech Finance

10. (13) Nordea reports first trades on blockchain-based platform – FinanceFeeds

11. (12) r3.com Blog Archive Chain Reaction: How Blockchain Can Transform Deep Tier Financing

12. (12) Industries, Looking for Efficiency, Turn to Blockchains – The New York Times

13. (11) First Pilot Client Transactions Successfully Executed on Batavia Global Trade Finance Platform | Global Trade Magazine

14. (11) Major European Banks Complete Live Trades on IBM Blockchain

15. (10) New research provides insights into Blockchain in trade finance

16. (10) Introducing Crypto Credit Enhancement to Trade Finance Industry | Coinschedule

17. (10) Export Financing News – Foreign Trade Online

18. (9) we.trade Executes First Corporate Transactions | PYMNTS.com

19. (9) Seven European Banks Hire IBM To Develop Blockchain Trade Finance Platform – WorldCoinIndex

20. (8) Hong Kongs blockchain Trade Finance Platform to go live in September | Global Trade Review (GTR)

21. (8) Global Blockchain’s Statement to Investors Regarding Q2 Performance

22. (7) European Banks Complete First Live Blockchain Platform Trade

23. (6) European Banks Complete Real-Time Trades on We.Trade Blockchain, Industry Responds | NewsBTC

24. (6) Cobalt Blockchain Announces US$10m Trade Finance Facility Letter of Intent with United Bank for Africa

25. (5) Open Mineral plans blockchain consortium for minerals trading | Reuters

26. (5) European Banking Authority Shares Blockchain DLT Impact in Trade & Finance to Banks

27. (4) Blockchain Can Reduce Bank Trade Finance Operating Costs by 80 Percent – UNHASHED

28. (4) UBS CEO Sergio Ermotti: Blockchain almost a must-have for business

29. (4) Blockchain | Bank Innovation | Bank Innovation

30. (4) How ModulTrade uses the blockchain to make global trade accessible

31. (4) Blockchain Banking Milestone: European Banks Complete First Live Trades on We.Trade Platform – Blockchain News

32. (4) Bankers tout trade finance as the sweet spot for blockchain – TXF News

33. (3) Hong Kong, Abu Dhabi Partner To Develop Blockchain Trade Finance Network – BlockTribune

34. (3) Blockchain Powered Trade Platform TradeIX Secures $16 million Through Series A Funding Round Led By ING Ventures | Crowdfund Insider

35. (3) ING Ventures Invests in Blockchain-Based Trade Finance Platform TradeIX | AllCrypto

36. (2) Blockchain ‘Almost A Must’ for Business: UBS CEO | Investopedia

37. (2) Blockchain in Finance: Beyond the Hype Prospus

38. (2) Hong Kong, Abu Dhabi To Develop Cross-Border Trade Financial Network Using DLT – ETHNews.com

39. (2) Blockchain News & Events | Genesis Block: Blockchain Advisory, Technology, Financial Services

40. (1) Trade Finance – Service Marketing – Blockchain ICO Consulting Promo by After-Motion-Templates