Commerzbank turns to blockchain for digital trade finance
Commerzbank and the Fraunhofer-Institute for Material Flow and Logistics (IML) in Dortmund have teamed up to research and develop the digitisation of trade finance using blockchain.
The bank says by using blockchain or distributed ledger technologies (DLT), it will build a decentralised database for internet of things (ioT) applications and smart contracts. This will offer the usual benefits – such as “faster transaction processing and new solutions in working capital management”.
Dr. Bernd Laber, group executive trade finance and cash management corporate clients, Commerzbank, says Fraunhofer IML “grants the best possible insight into the currently extremely heterogeneous digitisation approaches along the logistic and material flow processes of our customers”.
Prof. Dr. Michael Henke, director of Fraunhofer IML, adds he is “convinced that technologies like blockchain and smart contracts will become the central enabler for the intelligent interlinking of physical and financial supply chains”.
Fraunhofer IML was founded in 1981, and has 260 employees as well as 250 post-graduates and students.
Elsewhere, Commerzbank has recently been involved in two other notable developments.
It was one of the banks participating in a blockchain-powered project for collateral lending for liquidity transfers.
While earlier this year, it developed the first digitalisation platform for small- and medium-sized enterprises (SMEs).