Another blockchain milestone in trade finance
ING has tested the application of blockchain technology in trade finance in partnership with consortium R3 and trade finance platform TradeIX. The initiative, called Marco Polo, allows trade participants to connect in real time and automate financing before and after shipment, making trade finance safer, simpler, and more flexible.
“The technology ran fast and smoothly and the positive results showed us we are on the right track and ready to take the next step by entering into a pilot,” said Ivar Wiersma, head of Innovation at Wholesale Banking. “The tests ING ran as part of the proof-of-concept enabled us to see the value this solution could deliver in three separate areas of trade financing.”
The solution is focused on three distinct areas of trade finance: risk mitigation by provision of payment commitments based on the matching of trade data, payables finance, and receivables finance.
ING announced the launch of Marco Polo in September last year with the ambition to welcome more banks and third parties like credit issuers and logistics providers to the open-source platform powered by Corda blockchain technology.