Major Japanese Banks Introduce Service On Marco Polo Blockchain
Japan’s very own bank (deemed to be the largest in terms of the total assets) SMBC or Sumitomo Mitsui Banking Corporation is expected to launch a blockchain-based trade finance services. The release of these services is slated in the second half of this year. Here is everything about it in a nutshell.
Releasing a New Set Of Services
According to the official report, the aforementioned bank’s vice chairman named Yasuyuki Kawasaki revealed the news during the recently held fintech seminar in Tokyo. He said that the bank would soon release a new set of services specifically designed for both import and export firms through the utilization of a trade finance blockchain platform courtesy of the Marco Polo network.
Kawasaki further stated that trade finance is often a “very complicated,” one that has been a tradition since time immemorial. As such, it is deemed a paper-based and time-consuming process. Apparently, SMBC was successful in completing a proof-of-concept via the blockchain platform, a milestone it achieved back in February this year. The goal was to significantly improve its very own trade operations. At that time, the platform was described to have the ability to offer “paperless, real-time connectivity,” and much easier access.
The Marco Polo network, in particular, was built directly on the Corda platform of the blockchain software startup called R3. Interestingly, all of the network’s first real-world transactions went live last month. It should also be noted that the said network was developed and founded by both R3 and TradeIX, a trade finance specialist.
How The Network Helps
Basically, all of these transactions happened between two companies based in Germany. One transaction referred to the delivery of special hydraulic couplings originating the country all the way to China. As for the other one, it was involved in the delivery of pumps within the country.
Since launching in 2017, the above-mentioned network has been successful in adding a handful of major financial institutions as members. This includes, but not limited to, BNP Paribas, ING, and Commerzbank.
Just recently announced, Helaba, BayernLB, S-Servicepartner have also become members of the network. They are added to serve pilot and evaluation purposes. The managing director for Marco Polo’s Centre of Excellence for Banking and Trade, Daniel Cotti, said that they have the resources and technology needed in transforming the way banks serve all trade finance customers. Even more so, these resources can be used in making access to credit a lot easier, while significantly reducing the risk and increase overall transparency.