Over 50 Banks In 27 Countries Simulate Letter Of Credit Transactions On R3’s Blockchain
Over 50 banks hailing from 27 countries on six continents, participated in the simulation of letter of credit transactions on R3’s blockchain platform, as announced by the company in a press release published on May 8.
Dubbed as Voltron, 96% of the participants asserted that the system will purportedly accelerate and reduce the cost of their letters of credits procedure, as per the release. Also, 86% of them reportedly find the inefficiencies of the traditional system as increasingly intolerable.
As claimed by the company, Voltron cuts the execution time of the procedure from 5-10 days to under 24 hours. R3 further states that after the adoption of the new system, 61% showed interest in moving trade flows to “open account,” an option which is reportedly riskier for exporters.
The six-weeks-long trial reportedly received participation from CIB, MUFG, RBI, Standard Bank, National Bank of Egypt, and Societe Generale. The system was delivered through a collaboration between R3 on Microsoft’s Azure cloud platform, Bain and CryptoBLK.
Compatible with both Corda and Corda Enterprise, Voltron is designed aiming to replace the traditional finance links and networks with a shared ledger. In March, reports surfaced that United Kingdom-based banking giant HSBC seeks banking partners in South Korea in order to deploy Voltron in the country.
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