Trade Finance Blockchain Platform Batavia Completes Live Trade Transactions

News | April 19, 2018 By:

Batavia, a blockchain trade finance platform jointly developed by Bank of Montreal (BMO), CaixaBank, Commerzbank, Erste Group, IBM and UBS, has successfully completed its first live pilot transaction with corporate clients.

The initial transactions on Batavia included the trading of cars from Germany to Spain, and textiles for furniture production from Austria to Spain. The pilot effort saw the platform carry out the full cycle of trades, automatically forming agreements and closing payments in a process powered by smart contracts and with transactions recorded on a blockchain.

The platform is able to integrate track and trace and risk management tools, which can be tied to key events in the supply chains and signals from Internet of Things (IoT) devices agreed upon between buyer and seller. The companies said these and many other features will help in establishing the trade finance platform as a solid foundation for a future trade finance ecosystem.

The Batavia project is now is looking to enter a new phase focused on the building out of a production-ready solution. This may include joining forces with FinTechs, financial institutions, or other innovation leaders in the market.

“Our joint successful live transaction demonstrates the potential of such a platform,” said Niko Giesbert, divisional board, fixed income, currencies & commodities and trade finance and cash management at Commerzbank. “Trade data and smart payment, which is automatically triggered by the transport data, form an important basis for risk management and financing instruments and add value to every supply chain. ”

“We are proud to have played a significant role in achieving this milestone – successfully enabling international trade using blockchain,” said Jeffrey Shell, Managing Director and Head of Global Trade & Banking at BMO. “We are committed to continuing to develop innovative solutions that help our clients reach new markets; simply, safely and quickly.”

“The members of Batavia have demonstrated how sharing data among permissioned network members can accelerate cross-border trades and bring new transparency to the financial system, both in real-time and at scale,” said Jason Kelley, general manager of IBM Blockchain Services.