R3 has completed the largest on-chain trade finance pilot project to date, with more than 70 organizations from 25 countries participating together

According to Cointelegraph reported on December 17, the Marco Polo Network, a trade financing network jointly developed by the well-known British enterprise blockchain company R3, has completed its largest pilot financing project.

blockchain-3585482_1280 (Image source: pixabay )

According to an official statement issued on December 12, Marco Polo, based on R3's open source blockchain platform Corda, chaired the world's largest trade finance pilot project, with more than 70 organizations from 25 countries participating in the The project includes financial giants such as Japan SBI Holdings.

All respondents believe that blockchain has the potential to improve the status of the industry

As the pilot project involved more than 340 participants in multiple industries, from financial services to automotive, its joint initiative aims to improve trade finance and working capital solutions across multiple industries. Other industries include telecommunications, logistics, shipping, real estate and hospitality.

All interviewees participating in the pilot project stated that blockchain-based trade finance and working capital instruments have the potential to speed up the discounting process of accounts receivable and reduce costs for banks and businesses. At the same time, 75% of respondents believe these changes will be realized within five years.

Marco Polo's co-developer TradeIX provides working capital procedures for pilot projects

The trade finance pilot project deployed a working capital application developed by Irish technology company TradeIX, which is dedicated to providing solutions for financing receivables. Accounts receivable financing, also known as factoring or discounted accounts receivable, is a process of purchasing accounts receivable that enables companies to optimize their working capital, reduce credit risk, and increase liquidity. The pilot project lasted 7 weeks.

The banks participating in the joint trial include ABN AMRO, Bank of Mexico and financial services company Banorte, Citizens bank, Commerzbank, SBI Holdings, Bank of East Asia and Bank of Saudi Arabia. Other participating institutions include BMW, Germany ’s major automaker, Japan ’s Katsusan Corporation, International Islamic Trade Finance Corporation, Japan ’s Sumitomo Corporation, and financial services agency Süd Factoring under the German bank Landesbank Baden-Württemberg.

Munetoshi Yamada, director of business development for SBI Holdings Japan and SBI R3 Japan, said Marco Polo will change "the relationship between traditional banks and businesses in an innovative way, and at the same time, he is confident in achieving a true multi-banking platform ".

According to reports, Marco Polo is an alliance of the world's major financial and banking institutions designed to simplify international trade. Marco Polo Network was established in 2017 and is a joint development project of R3 and TradeIX. So far, it has 31 members, including financial firms such as BNP Paribas, Dutch International Group, Mitsubishi UFJ Financial Group, Bank of America and Agro Credit .

In late November 2019, New York Mellon Bank, a major U.S. banking and financial services company, also joined the Marco Polo Network.