Commerzbank, Bangkok Bank Conduct EU To Asia Trade Transaction On Marco Polo Blockchain Networkbr>
Commerzbank and Bangkok Bank have jointly executed a Europe to Asia trade transaction using the Marco Polo trade finance blockchain platform.
Launched in 2017, Marco Polo is utilizing R3’s Corda blockchain to allow banks to easily integrate into trade orchestrations, bringing in ERP, procure to pay, logistics, payment, insurance data, real-time into the transactions. The platform counts over 20 banks from across the globe as its members, including ING, Commerzbank, BNP Paribas, Anglo-Gulf Trade Bank, NatWest, Natixis, Bangkok Bank, and others.
The latest international trade transaction involved German specialty glass manufacturer Schott and Thailand-based packaging manufacturer A.P.A. Industries. It comprised the supply of glass tubes from Schott to A.P.A. Industries. APA uses the glass tubes for high-end pharmaceutical packaging for the Asian market.
The order and delivery data were agreed between the companies via the Marco Polo network and payment was secured by a conditional payment commitment from Bangkok Bank, the buyer’s bank. The entire flow of information was efficiently and comprehensibly mapped via R3’s Corda DLT platform. The companies and the banks were reportedly able to communicate and view trading data simultaneously via specially set up digital nodes.
“These transactions prove how relevant DLT will be for German SMEs and the export industry,” said Enno-Burghard Weitzel, head of product management trade services at Commerzbank AG. “We are happy to be one of the drivers to develop this digital solution for trade finance and to support clients with our expertise.”
Mark Siegel, Senior Manager Treasury at Schott, said that they expect DLT to significantly simplify and accelerate their international business and are pleased that they were able to participate as a partner in this pilot project.
After the second successful pilot project, Marco Polo is planning to expand the network with additional banks and participants from the transport and insurance industries in order to map the entire value chain in the foreign trade business.