The third-largest bank in Japan, Sumitomo Mitsui Banking Corporation (SMBC), has revealed that it will be implementing blockchain technology commercially to carry out trade finance activities, after a successful proof-of-concept test.
According to a report by Kryptomoney, SMBC made an announcement that it will be adopting the Marco Polo blockchain platform developed by R3 and Trade IX to perform trade finance activities.
SMBC disclosed that it had already carried out a proof-of-concept (PoC) test in a trial that successfully completed a cross-border transfer between Mitsui & Co, Indorama Ventures, and Bangkok Bank.
The Marco Polo blockchain platform will enable SMBC to make real-time transactions and grant access to the platform to other stakeholders, in order to enhance the efficiency of the operation and greatly improve transaction speeds compared to traditional banking methods.
The decentralized platform allows data to be updated and displayed in real-time, such as information relating to shipping routes, schedules, invoices, and documentation required for cross-border transactions.
Several banking and financial institutions across Asia have expressed interest in adopting the Marco Polo platform, which have proven to expedite transactions while reducing costs significantly.
Currently, Marco Polo is already utilized by major companies from Standard Chartered, Bank of America, MasterCard, SMBC, Mitsui & Co, Bangkok Bank, and BNP Paribas.
With more companies in the banking industry adopting decentralized technology, it is likely that blockchain will change the face of finance in the near future.
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