Japan’s third-largest Bank, Sumitomo Mitsui Banking Corporation (SMBC), plans to start using the Marco Polo blockchain platform for trade Finance by the end of this year.
The Bank said international proof-of-concept testing involving Japanese trading company Mitsui&Co, Thai firm Indorama Ventures and Thailand’s third-largest Bank, Bangkok Bank, was successfully completed.
During testing, Bangkok Bank provided Mitsui&Co with a payment guarantee for Indorama Ventures. Based on this guarantee, SMBC would be able to get real financing for accounts receivable. the
Platform will allow participants to update purchase orders, invoices, logistics information, shipment schedules, and port information, while automatic matching will lead to highly efficient data reconciliation.
Earlier this year, SMBC, with the participation of Mitsui&Co, conducted a similar proof-of-concept test. The Bank provided very little information about the pilot project in February, but said it planned to commercialize Marco Polo by the third quarter of this year.
SMBC said it will start trading Finance on the Marco Polo blockchain platform in April. In may, Banco Bradesco and Raiffeisen Bank joined Marco Polo, and in August, the first real transactions were made on the platform.
In addition, the first transaction between Russia and Germany was recently conducted on the Marco Polo blockchain platform. In September, Bank of America joined the Marco Polo platform, and Mastercard did so earlier.