Group of European Banks Completes First Live Financial Trades Using Blockchain
A group of European banks announced on Tuesday that they have successfully completed their very first live financial trades using blockchain technology. The trades were executed via we.trade blockchain platform, a blockchain-based platform jointly developed by the banks.
According to the announcement today, July 3, the live trades were executed over the past 5 days among ten firms and were facilitated by four European banks using the blockchain.
HSBC claims that 3 of its clients managed to successfully complete their open account transactions via the jointly developed blockchain platform, within Europe. HSBC is one of the nine banking institutions that set up we.trade as a joint venture.
We.trade, built on IBM’s Hyperledger Fabric technology and its blockchain platform, was set up by KBC, HSBC, Deutsche Bank, Natixis, Rabobank, Nordea, Santander, UniCredit, and Société Générale, as a joint venture. The joint venture aims to boost the efficiency of financial transactions across borders.
It was announced in April that we.trade was planning to test the blockchain platform in May with an expected commercial launch in the summer.
At the time, Société Générale said that the platform’s development is able to move fast because it aims to improve trade between small and medium-sized businesses trading within Europe.
IBM’s blockchain lead in Europe, Parm Sangha, commented on Tuesday’s announcement:
“As we.trade has moved from pilot applications to conducting live transactions across borders, it has demonstrated the power of blockchain technology in an enterprise setting.”
Currently, the blockchain-based platform operates in eleven European countries. The platform’s chief operating officer, Roberto Mancone, said in today’s announcement that the next step of the venture will be “getting buy-in from additional banks and their customers in Europe and further afield.”
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