Commerzbank and Landesbank Baden-Württemberg (LBBW) have today announced that they have – for the first time – successfully executed the necessary data transfers to complete two commercial transactions via blockchain-based trade finance network Marco Polo.
As part of a pilot project, two commercial transactions between the international technology group Voith, and the leading pump and valve manufacturer KSB SE, were mapped using blockchain technology. One transaction involved the delivery of special hydraulic couplings from Germany to China and the other the delivery of pumps within Germany.
For both transactions, the companies agreed order and delivery details via the Marco Polo network. After delivery, the delivery details were automatically matched with the previously-agreed data – triggering an irrevocable payment obligation on the part of the buyer’s bank. The overall flow of information was efficiently and transparently mapped by R3’s Corda blockchain platform.
“The transaction proves that blockchain technology offers our clients state-of-the-art financing for trade transactions,” says Nikolaus Giesbert, divisional board member for Trade Finance & Cash Management at Commerzbank. “We see a valuable opportunity here to work together to develop and bring to the market innovative trade finance solutions.”