Voltron preps launch of documentary trade on R3’s Corda
The Voltron initiative has partnered with R3 to run its open platform for documentary trade on the Corda blockchain, targeting a launch somewhere in 2019.
Voltron’s initial aim is to use blockchain technology to bring “significant efficiencies” to transacting letters of credit.
Founding members of Voltron include Bangkok Bank, BNP Paribas, CTBC Holding, HSBC, ING, NatWest, SEB and Standard Chartered.
The firm has been looking for feedback from its corporate clients since its inception, with a successful live transaction with Cargill in May 2018. Voltron is extending its corporate customer programme.
Corporate customers will be able to connect with their banks and trading partners via a single channel, for both issuance of letters of credit and presentation/exchange of documents across an open network.
David E. Rutter, CEO at R3, comments: “Today’s trade finance solutions were built in siloes, adding significant risk, operational inefficiencies and costs into the process. Previous trades conducted on Voltron have demonstrated banks can offer a commercially and operationally viable blockchain solution with significant customer benefit.”
In addition, trade documents produced on external networks by a corporate’s supply chain partners can be digitally sent, verified and processed in Voltron. Voltron says that this new model “provides legal enforceability of title documents and greater digitisation across business networks on Corda”.
The Bolero network and electronic bill of lading (eBL) functionality is included at launch. The essDocs network and eBL solution will start the initial design and integration with the Voltron solution, with others to be added on a rolling basis.
Voltron wants to help the banks’ corporate clients reduce internal operational procedures through less reconciliation with their trading partners and banks.
Voltron is inviting all banks and corporates to apply to join the network.