Germany’s Commerzbank and Thyssenkrupp, the business conglomerate, have consummated a foreign exchange deal on a blockchain platform, Reuters disclosed.
Using R3’s Corda platform, Thyssenkrupp moved half a million euros through a EUR/PLN FX Forward transaction. The contract bound the euro and the Polish zloty exchange rate at a future time. The deal will be stored in the blockchain as a single unchangeable record eliminating the worry regarding transaction reconciliation.
According to the report, the transmittal confirmation was immediately received by Thyssenkrupp. As long as the deal is carried out on the blockchain, confirmation is instantaneous minimizing delays and errors resulting from traditional reconciliation methods.
For Commerzbank manager Nikolaus, reconciliation is “a major issue for banks” engaging in forex trading. He went on:
“Significant resources are dedicated to resolving the issues that occur during the matching process. This deal demonstrates how the use of distributed ledger (blockchain) can transform and digitalize the processes in this space.”