Turkish işbank and German Commerzbank has completed the first blockchain-based trade finance transaction between the two countries.
On Jun. 5, Cointelegraph Turkey reported that İşbank is the first Turkish bank to join R3’s Corda platform earlier this year and now became the first bank in Turkey to use blockchain technology on trade finance transactions.
In cooperation with Commerzbank, @isbankasi is the first bank in Turkey to use #blockchain technology on trade finance transaction. — Commerzbank (@commerzbank) June 4, 2020
The transaction took place on 27 May 2020 between İşbank, Şişecam, Kuraray Europe GmbH, and Commerzbank AG.
It supported trading of laminated glass interlayers from Germany to Turkey.
The pilot was completed on the Marco Polo network, known as the collaboration network for securing payments and financing of trade transactions.
A press release from İşbank adds:
“Its DLT allows foreign trade transactions to be financed securely and in a very efficient manner. Transactions are safe and transparent and can be processed in a trusted environment.”
R3’s Corda technology allowed the trade transaction data to be only distributed to the parties along the workflow of the trade.
The settlement process proved to be more efficient in comparison to traditional transactions.
Blockchain technology enables a paradigm shift in foreign trade supply chains by increasing security, speed, and operational efficiency, notes Şahismail Şimşek, İşbank Deputy Chief Executive:
“Now, with this pilot transaction using blockchain technology, we are starting a reliable and easier period based on matching data in foreign trade.”
Enno-Burghard Weitzel, Head of Trade Product Management at Commerzbank added:
“After having processed various Marco Polo Payment Commitment pilot transactions last year, we are now very happy to have piloted with İşbank an advanced pre-live version of the platform. We ensured the technical performance and validated the workflow with our corporates to pave the way to production.”
Source: Cointelegraph | Image: Unsplash