Deutsche Bank, HSBC and SocGen are among those working with the tech giant on the new initiative for SMEs
A group of seven European banking heavyweights has teamed up with technology giant IBM to create a blockchain-based platform aimed at simplifying trade finance for small and medium-sized businesses.
The Digital Trade Chain Consortium - comprising Deutsche Bank, HSBC, KBC, Natixis, Rabobank, Societe Generale and UniCredit - will work with IBM to use the technology to help SMEs in Europe manage, track and secure domestic and international trade transactions, according to a statement late yesterday. The consortium was created in January with the aim of building this type of platform.
The project is another example of partnerships being forged between banks that are normally in competition with each other, as financial institutions seek ways to use blockchain to solve business problems. Blockchain, a type of distributed ledger technology, creates a permanent record of transactions that cannot be erased. Many think the technology will be a game-changer for finance.
Marie Wieck, general manager at IBM Blockchain, said in a statement: "In working with hundreds of clients around the world on a diverse range of blockchain projects, trade finance has emerged as one of the strongest use cases for the technology. By addressing the SME market, which faces challenges in data sharing and access to capital, the Digital Trade Chain Consortium is pioneering a unique blockchain solution with the potential for widespread impact."
It is not IBM's first blockchain partnership with the finance sector. It has previously partnered with custody bank Northern Trust and Swiss asset manager Unigestion to bring blockchain to the private equity market.
The new trade finance platform will be hosted in the IBM Cloud and will be built on Hyperledger Fabric, an open source blockchain platform developed by the trade association the Linux Foundation. It is expected to launch by the end of the year.
The Digital Trade Chain Consortium - comprising Deutsche Bank, HSBC, KBC, Natixis, Rabobank, Societe Generale and UniCredit - will work with IBM to use the technology to help SMEs in Europe manage, track and secure domestic and international trade transactions, according to a statement late yesterday. The consortium was created in January with the aim of building this type of platform.
The project is another example of partnerships being forged between banks that are normally in competition with each other, as financial institutions seek ways to use blockchain to solve business problems. Blockchain, a type of distributed ledger technology, creates a permanent record of transactions that cannot be erased. Many think the technology will be a game-changer for finance.
Marie Wieck, general manager at IBM Blockchain, said in a statement: "In working with hundreds of clients around the world on a diverse range of blockchain projects, trade finance has emerged as one of the strongest use cases for the technology. By addressing the SME market, which faces challenges in data sharing and access to capital, the Digital Trade Chain Consortium is pioneering a unique blockchain solution with the potential for widespread impact."
It is not IBM's first blockchain partnership with the finance sector. It has previously partnered with custody bank Northern Trust and Swiss asset manager Unigestion to bring blockchain to the private equity market.
The new trade finance platform will be hosted in the IBM Cloud and will be built on Hyperledger Fabric, an open source blockchain platform developed by the trade association the Linux Foundation. It is expected to launch by the end of the year.
For More Information: Clare Dickinson
