By Japan’s third-largest bank by total assets, Sumitomo Mitsui Banking Corporation (SMBC), recently announced that it will be rolling out blockchain-based financial services during the second half of 2019.
Yasuyuki Kawasaki, the vice-chairman of SMBC broke the news during a recent fintech seminar in Tokyo, stating that the financial institution will begin rolling out services for import and export businesses via the Marco Polo trade finance blockchain.
Kawasaki stated that, traditionally, trade finance is seen as a “very complicated”, time consuming and paper-based process. SMBC created its proof-of-concept back in February in an effort to improve all trade operations. At the time, the bank stated that the platform “provides paperless, real-time connectivity and easier access.”
Built upon blockchain software startup R3’s Corda platform, Marco Polo experienced its first real-world transactions last month. The network itself was founded by R3 in collaboration with TradeIX, a financial specialist company.
The first real-world live transactions occurred between two German companies with one transaction involving the delivery of hydraulic couplings from Germany to China and the other involved delivery of pumps in Germany.
Since its launch back in 2017, the Marco Polo platform was added a number of major financial players as members and this includes ING, Commerzbank, BNP and Paribas, just to name a few.
It was also announced earlier today that BayernLB, Helaba and S-Servicepartner have joined the Marco Polo network “for piloting and evaluating purposes.”
Marco Polo’s managing director for the Centre of Excellence for Banking and Trade, Daniel Cotti, said:
“Today, we have the resources and technology to transform the way banks serve their trade finance customers and enable easier access to credit, while minimizing risk and increasing transparency.”
The trade finance sector is continuously being considered as a use case for blockchain technology. Back in July 2018, another trade finance blockchain network dubbed We.Trade – developed upon Hyperledger Fabric with nine banks in tow went live.
Yesterday also saw the Chinese forex regulator and manager – the State Administration of Foreign Exchange (SAFE), announce that it has developed a blockchain network with the sole purpose of addressing inefficiencies within the cross-border trade finance sector.
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