A report published by IBS Intelligence on August 29 revealed that international bank Standard Chartered and Siemens, with assistance from digital ledger firm TradeIX, plan to launch a platform to put bank guarantees on a blockchain. The project aims to move the process away from the traditional paper-intensive process and on to a full digitized end-to-end process using smart contracts.
The platform was built using R3’s open source Corda platform, with the application layer being provided by TradeIX.
If the pilot is successful, the platform will let firms bring an efficient process for large clients and digitize guarantee issuance, amendments, and claims.
Michael Bueker, the Chief Financial Officer of Siemens says:
“While digitalization is revolutionizing whole industries, incorporating digital trade finance solution into our daily operations is an important step. Especially at Siemens, as a digitalization pioneer, this move is part of our strategic mission of going digital in all arenas. This will streamline our processes and make our trade finance operations smoother, faster and more efficient. We are delighted to partner with Standard Chartered in leading such a game-changing transformation which will help our customers go digital in their guarantee and claim processes and achieve higher efficiency.”
The pilot program was launched in March of this year and is expected to be completed by the end of the year.
The pilot isn’t Standard Chartered’s first effort in the blockchain sphere. Back in 2015, the banking firm was already looking into the potential of blockchain tech in the world of trade finance.
Since then, the bank has gone through other trials and development partnerships, most recently acting as the banking partner for Ant Financial, the payment subsidiary of Chinese firm Alibaba.
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