IBM and 5 top banks pass first transactions on Batavia blockchain-based platform
Batavia, a global trade finance platform based on blockchain and built on the IBM Blockchain Platform has passed its first live pilot transactions with corporate clients.
According to the IBM statement, Batavia platform is jointly developed by a consortium of five banks – UBS, Bank of Montreal (BMO), CaixaBank, Commerzbank and Erste Group, and IBM as equal member to the banks, in consultation with transportation industry experts and the banks’ customers.
Initial transactions included the trading of cars from Germany to Spain and textile raw materials for furniture production from Austria to Spain.
Fabio Keller, IBM representative has informed that the first live pilot transactions on the Batavia platform were successfully completed by corporate clients.
“These were conducted with a variety of transportation modes, across different geographies and with trading parties of various sizes to demonstrate Batavia’s ability to scale and manage diverse transactions. Cars were traded from Germany to Spain and raw textiles for furniture production were traded from Austria to Spain. By executing their trade agreements through Batavia, the parties involved were able to avoid the types of errors that are caused by a lack of transparency.”
— IBM Blockchain (@IBMBlockchain) April 19, 2018
Fabio Keller explained that Batavia helps to simplify the end-to-end process of a trade by providing a digital and automated way of arranging, securing and financing international trade transactions.
“Because this trade finance platform is built on blockchain, there is a single, distributed version of all documentation that is shared across the involved participants of such trade. That means everyone has the information they need to do their due diligence and complete the transaction and sees therefore the same truth like all other involved parties. This includes the closing of trade agreements and the execution of smart payments. And by “smart,” I mean the payments is automatically triggered by specified events in the supply chain and immutably recorded to the blockchain.”
Commerzbank announced that the platform is able to integrate track and trace and risk management tools, which can be tied to key events in the supply chains and signals from IoT devices, agreed upon between buyer and seller.
Niko Giesbert of Commerzbank said that Batavia is looking to enter a new phase focused on the building out of a production-ready solution, including joining forces with fintechs, financial institutions or other innovation leaders in the market.
“Our joint successful live transaction demonstrates the potential of such a platform. Trade data and smart payment, which is automatically triggered by the transport data, form an important basis for risk management and financing instruments and add value to every supply chain.”
In his turn, Alexander Dietlmeier, Head of Group Treasury at AUDI AG called Blockchain an important future technology for Audi.
“In cooperation with Commerzbank, we have processed a worldwide, blockchain-based commercial transaction through the Batavia platform for the first time – efficiently, safely and transparently. This achievement has demonstrated to us once again the great potential this innovative application holds. We have gained important experience that will enable us to continuously develop our capabilities in this field, and we will be testing this technology for other use cases in our distribution process.”