On Thursday, August 30, Standard Chartered (SC), the UK based multinational banking and financial assistance company, declared a partnership with Siemens Financial Services, the financing department of Siemens, and TradeIX, a digital trade provider. In the press release, SC explained that the end-to-end blockchain pilot project bank guarantees for trade finance, using R3 Corda.
The project aims to revolutionize the bank guarantees business, which is traditionally paper-intensive, to a digital level. This outline represents the first blockchain client pilot that digitizes the whole process, from the beginning of the bank guarantee to the claim handling.
If victorious, the pilot will “… digitize trade and leverage real-time data to deliver efficiency gains and transform the way trade finance is conducted.” Samuel Mathew, SC’s global head of trade products stated and added; “The future of trade is going to be all about data.”
With this endeavor, Siemens will be able to digitize its guarantee process for consumers with major transaction volumes in the future, spanning issuance, amendments, and claims, reducing the multiple touch-points and incompetence which are standard with the inconvenient paper process today.
Michael Bueker, Chief Financial Officer, Siemens LLC explained; “This will streamline our processes and make our trade finance operations smoother, faster and more efficient. We are delighted to partner with Standard Chartered in leading such game-changing transformation which will help our customers go digital in their guarantee and claim processes and achieve higher efficiency.”
The pilot launched in March 2018 and is expected to be completed later this year. The project is based on auto-executing smart arrangements, leveraging the Corda Distributed Ledger as well as the application layer presented by TradeIX.
Rob Barnes, TradeIX CEO commented; “We believe that global trade is at the cusp of multi-level digital transformation which will revolutionize the entire business and operating model.” and he added; “As the platform provider, we are excited to be involved with Standard Chartered and Siemens Financial Services to help script this journey and bring the power of the distributed ledger to solve the challenges facing today’s trade ecosystem.”
Author: Berna Bayindir
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