Japan’s Third Largest Bank To Digitize Trade Finance With Blockchain

Asia Blockchain Review
October 1, 2019
Japan’s Third Largest Bank To Digitize Trade Finance With Blockchain

Sumitomo Mitsui Banking Corporation (SMBC), Japan’s third largest bank by assets, has announced it will adopt trade finance blockchain Marco Polo on a commercial basis within this year.

Blockchain To Digitize Manual Trade Finance

The three Asia companies include Mitsui & Co, a Japanese general trading company; Indorama Ventures, a Thai petrochemical company; and Bangkok Bank, Thailand’s third-largest bank.

In the test, Bangkok Bank issued a payment guarantee for Indorama Ventures to Mitsui & Co. The guarantee allowed SMBC to undertake receivable financing.

Before the three Asian companies, Marco Polo completed tests for trade finance transactions between Germany and Russia.

According to SMBC, users can update documents such as purchase orders, invoices, shipping schedules, and port information on the Marco Polo platform developed by R3. The technology is expected to be a breath of fresh air in the current trade financing process, which remains paper-based and manual.

Major Banks Now Use Blockchain Network

Backed by Dublin-based TradeIX and New York-based R3 LLC, Marco Polo runs on open-source Corda. Major financial institutions that are members of the blockchain-based network include Bangkok Bank, Mitsui & Co, SMBC, Bank of America, BNP Paribas, Mastercard, and Standard Chartered.

Among Marco Polo’s competitors are Voltron, which also uses Corda, ethereum-based CargoX, and Hyperledger Fabric-based eConnect.

As the largest and fastest growing trade and working capital finance network in the world, Marco Polo provides blockchain solutions for trade and working capital finance to banks and corporates. Marco Polo is also part of the Universal Trade Network.

Source: www.coindesk.com

About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

Related Article
Vietnam to Adopt Blockchain for Smart City Project
Vietnam’s Ho Chi Minh City has disclosed its plan to adopt blockchain technology and artificial inte...

November 21, 2019

UPS Tracks Beef Shipment with Blockchain
International logistics provider UPS announced that it has shipped beef from the US to Japan, tracke...

November 21, 2019

Ant Financial Introduces Blockchain Open Alliance
Ant Financial, owner of Alipay, has introduced the Ant Blockchain Open Alliance aimed at lowering th...

November 20, 2019

Vietnam Plans to Build Smart City with Blockchain
Vietnam has announced a plan to build a smart city and tackle pressing problems in Ho Chi Minh City ...

November 20, 2019

We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us