Voltron Blockchain Platform Completes Trial With 50 Participants
Voltron, a blockchain platform that enables companies to process and settle their invoices for trade efficiently, has successfully completed a six week trial with more than 50 banks and corporates.
Voltron, first announced in October 2018, uses blockchain technology to resolve an issue concerning the long process of paper-based letters of credit exchanged between importers and exporters, and other parties including shipping companies and banks. It was developed by major banks and blockchain firms, including Bangkok Bank, BNP Paribas, CTBC Holding, HSBC, ING, NatWest, SEB, Standard Chartered, Bain, CryptoBLK, and R3.
The six week trial, which builds on a number of successful live transactions on Voltron in 2018 and earlier this year, was delivered by a collaboration of Bain, CryptoBLK, and R3 on Microsoft’s Azure cloud platform. It simulated multiple digital letter of credit transactions across 27 countries on six continents. The Voltron platform, based on R3’s Corda blockchain, was reportedly able to cut the execution time of the procedure from 5-10 days to under 24 hours.
96% of trial participants, which include CIB, MUFG, National Bank of Egypt, RBI, Standard Bank and Societe Generale, among others, said that the Voltron platform will accelerate their letters of credit process, improve efficiencies and reduce cost. 86% of firms believe inefficiencies of the traditional system are increasingly becoming ‘intolerable’ for both corporates and banks. As a result, 61% said they are likely to move trade flows to ‘open account,’ a far more risky option for exporters.
“The trial has been a great collaboration between banks and corporates, R3 and CryptoBLK and it ensures a better understanding of the possibilities and benefits of Voltron: the end-to-end digitization of letters of credit,” said Chris Sunderman, blockchain initiative lead trade finance at ING. “This will help in broadening the support base of Voltron and it will grow a larger and geographically well spread network of banks to adopt it, enabling an increased number of transactions in the production phase.”
David E. Rutter, CEO of R3, said that this latest trial is testament to Voltron’s growth in recognition as one of the world’s top trade finance applications by banks and corporates.
“All parties involved demonstrate an increasing commitment to be involved in the development of the technology,” Rutter said. “The success of these trials build momentum amongst all participants, and have seen us take another step closer to shaping what the future of trade finance looks like. We encourage banks and corporates across the globe to join us in the trial of the Voltron CorDapp and contact R3 or any of the Voltrom member banks and partners directly.”
Source: Read Full Article