IBM is now in collaboration with five international banks in the creation of a global trade finance platform involving blockchain technology. The five banks involved are Commerzbank AG, Erste Group Bank AG, Bank of Montreal and CaixaBank SA and UBS Group AG.
The initiative intends to build blockchain-based technology in order to support trade finance transactions.
The platform, Batavia, would aid banks and their customers automate the trade finance process. According to the participating entities, this process sadly is still very manual and paper-based. Within trade finance, banks administer support and other services to importers and exporters to further commerce.
Batavia will also permit parties to track a transaction from the departure of the shipment to its arrival at its destination.
Blockchain is a shared ledger of data which is managed by computers instead of a central authority and was first developed in order to power the Bitcoin cryptocurrency.
The objective is to run the first pilot transactions on the network in early 2018.