[Editor’s Note: The earlier version of this article referred the Hyperledger Project as a subsidiary of IBM. This is factually incorrect. The Hyperledger Project is now owned by IBM; it is hosted by the Linux Foundation as an open-source project. We apologize for the unintentional inaccuracy.]
IBM will build and host a new trade finance platform with seven of the most influential European banks using it’s Big Blue’s Hyperledger Fabric.
This Digital Trade Chain Consortium (DTC) – which was formed in January 2017 – includes Deutsche Bank, HSBC, KBC, Natixis, Rabobank, Societe Generale and Unicredit.
The main goal is filling the financial gaps related to domestic and cross-border trade with a focus on small and medium companies located within the European old country; also it aims at helping to increase trade transparency.
The consortium was created with the seven banks we quoted above, but it is expected to include more banks from other countries in the next future.
IBM to provide the platform
In a competition, IBM won the contract to provide its cloud platform to the consortium project. This will leverage the potential problems of managing, tracking and guaranteeing security to international trades by connecting all the parties through online and mobile devices.
“To make the Digital Trade Chain network a reality and enable it to serve potentially thousands of the consortium’s banking clients, we turned to IBM in enterprise blockchain to help us quickly bring this highly scalable system into production. Their blockchain and banking industry expertise will help us create a new platform for small and medium businesses in Europe that can enable them for faster, easier and cheaper trade transactions,” explained CIO Rudi Peeters.
The DTC project will be built using the blockchain and the Hyperledger Fabric v1.0.0.
This means that all the parties involved in a trade transaction will be able to access the same source of information and to reduce the amount of paperwork required to finalize the trade.
Also, the use of a distributed ledger will guarantee full transparency.
The first tool seems will be in production by the end of the year.
The supply chain solution that was originated by KBC and the proof of concept that will be used has previously won the EFMA-Accenture Award for “best new product or service in banking” and the Global Finance award for “Innovator in Trade Finance,” as we can read the official press release published on the IBM blog.