Marco Polo a trade finance blockchain built on R3’s Corda platform completes its first two real-world transactions with two German companies: Voith, a manufacturer of machines such as turbines, generators and transmissions, and KSB SE, a supplier of pumps and valves.
Announced on Thursday, One of the transaction involved the delivery of special hydraulic couplings from Germany to China and the other includes delivery of pumps within Germany. As per the press release from the consortium behind the blockchain, in these transactions, the necessary data was exchanged through distributed ledger technology (DLT) and ditched the usual slow and costly physical documents and intermediaries.
Involved companies agreed on the order and delivery details through the Marco Polo network, after the goods were delivered, the shipment information was entered into the system and “automatically matched with previously agreed data, triggering an irrevocable payment obligation on the part of the buyer’s bank,” as stated in the release.
Neither the amount of money involved was disclosed nor did Marco Polo spell out which firm was the buyer and which was the seller.
The Two Banks
Payments and financing were handled by two banks as well, German: Commerzbank and Landesbank Baden-Wu?rttemberg, both founding members of the Marco Polo consortium. Nikolaus Giesbert, a divisional board member for trade finance and cash management at Commerzbank, which has also tested DLT in capital markets, stated:
“The transaction proves that blockchain technology offers our clients a payment undertaking and state-of-the-art financing for trade transactions with both foreign countries and domestically.”
A member of LBBW’s board of managing directors and head of its capital market business and asset management/international business, Dr. Christian Ricken, Stated DLT in trade finance “will make transactions faster, easier and more secure. Not only are we breaking new ground in terms of technology, but also in the cooperation between banks and businesses.”