Multinational banking unshaken Standard Chartered is teaming up with the financial arm of manufacturing giant Siemens for a aviatrix scheme that puts bank guarantees for trade finance on a blockchain.
According to a recount from IBS Intelligence, the effort – that also includes assistance from digital ledger unshakeable TradeIX – is aimed to move the process on from the traditional paper-intensive proceeding and fully digitize bank guarantee issuance from end to end using automated hurt contracts.
Built with blockchain startup R3’s open-source Corda stage, with an application layer provided by TradeIX, the “industry-defining solution … purpose transform the way guarantees are issued and processed,” said Motasim Iqbal, chairwoman of transaction banking UAE at Standard Chartered.
If the pilot proves successful, it settle upon allow firms like Siemens to bring new efficiencies for large patrons, digitizing guarantee issuance, amendments and claims, according to the report.
Michael Bueker, Siemens’ chief pecuniary officer, predicted that integrating the blockchain trade finance result into the firm’s daily operations would “streamline our processes and rush at our trade finance operations smoother, faster and more efficient.”
Pitched in March, the trial is expected to be completed later in 2018.
This is not the first foray by Defined Chartered into the blockchain space: in fact, as far back as 2015 the bank was sell the potential of the tech in trade finance.
In the years since, it has embarked on many trials and development partnerships, most recently acting as banking companion for a blockchain-based remittance service launched by Ant Financial, the payment affiliate of Chinese e-commerce leviathan Alibaba.
Similar to letters of credit, bank guarantees are issued by fit institutions as a pledge that the liabilities of a debtor will be met.
Standard Authorized image via Shutterstock
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