We.trade just announced that it has completed its first set of live operations, marking a huge milestone in cross-border trading using Blockchain technology.
We.trade is a Blockchain platform created by a consortium of some of the biggest banks in Europe. The consortium consists of Deutsche Bank, Natixis, KBC, HSBC, Nordea, UniCredit, Societe Generale, Rabobank and Santander, and was created to address the many issues that banks are facing with regard to cross-border payments.
We.trade has been developed on IBM’s Blockchain platform and is being powered by Hyperledger Fabric. This Blockchain platform claims that it provides a more cost effective as well as efficient way for Banks across the world to do business and trade across borders. This platform now offers customers a simple user interface, new opportunities for trading as well as innovative new smart contracts.
Expansion of We.trade
The trades conducted for these first operations were facilitated by five of the partner banks, across 10 companies and is the first ever commercially viable open account that has made use of Blockchain Technology. The Chief Executive Officer of We.trade, Roberto Mancone, the transactions carried over the last few days have proved that the trading platform is a robust as well as viable option for international financial transactions.
According to Dutch Rabobank’s chief digital transformation officer Bart Leurs, this collaboration underlines the ability of traditional banks to innovate to cater to clients’ needs through the We.trade platform.
According to Societe Generale, the focus of the consortium has been on small and mid-sized businesses that trade in Europe, so that the platform could scale up faster. Thanks to that strategy, We.trade now operates in 11 countries across Europe. Ultimately, We.trade hopes to expand to all countries across Europe, and then will look for banking partners across the globe.
Blockchain Technology in Banking
We.trade is not the only Blockchain based platform to be launched in the banking sector. In fact, Blockchain platforms sponsored by Banks are becoming increasingly common, both in Europe as well as other parts of the world.
For example, Spanish banking giant Santandar was the first bank to offer settlements using the Ripple platform in April this year. Additionally, Blockchain based technology – against developed by IBM – is being used for a major collaboration between banks in Asia.
Not all Blockchain ventures in the banking division have been successful though. Dutch bank Rabobank had announced its Rabobit cryptocurrency wallet in March, however, since then, there has been no news about the development.