Seven Major Banks Select IBM For Digital Trade Chain
Seven major banks, Deutsche Bank, HSBC, KBC, Natixis, Rabobank, Société Générale and UniCredit, have announced their decision to use IBM to build their new blockchain-based international trading system, the Digital Trade Chain (DTC).
The DTC platform is designed to streamline domestic and international trade for small and medium enterprises (SMEs) throughout Europe. According to the release, IBM won the bid after completing a global competitive bidding process.
The DTC solution will run on the Hyperledger and the IBM Cloud, and will connect all parties via the internet and mobile devices. As a result, SMEs will be able to conduct cross-border trade transactions with increased accountability and transparency. Further, the platform is anticipated to assist all DTC affiliated banks, domestic SME partners, and other European markets with establishing new revenue streams. The DTC platform will also initiate new trading connections and bolster trade growth. Credible resources are in demand, as the World Bank reports that 50 percent of SMEs lack access to sufficient lending. According to Rudi Peeters, CIO of KBC, the DTC platform will help streamline these markets.
"To make the Digital Trade Chain network a reality and enable it to serve potentially thousands of the consortium's banking clients, we turned to IBM in enterprise blockchain to help us quickly bring this highly scalable system into production." Peeters continued, "Their blockchain and banking industry expertise will help us create a new platform for small and medium businesses in Europe that can enable them for faster, easier and cheaper trade transactions."
The DTC was established in January 2017 after the seven banks signed a Memorandum of Understanding to develop and commercialize a blockchain platform for global finance. As a result, the DTC product was formed after participating banks contributed six-figures each towards the project. The DTC platform is expected to go into production by the end of 2017.