First Turkish-German trade finance transaction on Marco Polo blockchain network with İşbank and Commerzbank
In cooperation with Commerzbank, İşbank is first bank in Turkey to use blockchain technology on trade finance transaction.
Automatic matching of trade data-based on DLT provides irrevocable payment commitment, which not only serves as risk mitigation instrument, but also provides financing.
İşbank and Commerzbank have jointly run an international trade finance transaction based on distributed ledger technology (DLT). Payments were secured by digitally processing the related data transfer via Corda blockchain technology on the Marco Polo trade finance network.
İşbank is the first bank in Turkey to perform a trade finance transaction using blockchain technology. The transaction took place on 27 May 2020 between İşbank, Şişecam, Kuraray Europe GmbH, and Commerzbank AG and supported the trade of laminated glass interlayers from Germany to Turkey.
“Increasing security, speed, and operational efficiency in international trade, this technology is a paradigm change for foreign trade supply chains”, İşbank’s Deputy Chief Executive Şahismail Şimşek is convinced: “As İşbank, we offer innovative solutions to our customers’ financing needs with our firsts in technology. Now, with this pilot transaction using blockchain technology, we are starting a reliable and easier period based on matching data in foreign trade. We aim to offer new experiences to our customers by taking part in new technological developments in the world and developing foreign trade products over blockchain technology.”
Marco Polo is a collaboration network focussed on securing payments and financing of trade transactions. Its DLT allows foreign trade transactions to be financed securely and in a very efficient manner. Transactions are safe and transparent and can be processed in a trusted environment.
Thanks to R3’s Corda technology underpinning Marco Polo, the trade transaction data was only distributed to the parties along the workflow of the trade, making the settlement processes much quicker and more efficient. It is also possible to integrate third parties into the data flows where required by banks and trade partners. All parties involved were able to communicate and view trading data simultaneously.
“After having processed various Marco Polo Payment Commitment pilot transactions last year, we are now very happy to have piloted with İşbank an advanced pre-live version of the platform. We ensured the technical performance and validated the workflow with our corporates to pave the way to production,” underlines Enno-Burghard Weitzel, Head of Trade Product Management at Commerzbank.
“We were very excited and honored to take part in the Marco Polo project, as the technology of Marco Polo offers three big advantages. Firstly, it supports a trustful relationship between business partners and helps to offer unique services for our customers. Secondly, the platform supports our efforts to further digitalise business processes. Thirdly, Marco Polo Blockchain solution perfectly fits to one key part of Kuraray’s mission to use pioneering technologies”, remarks Juliane Löbig, Director Finance & Accounting, Kuraray Europe GmbH.
Şişecam’s Chief Financial Officer, Görkem Elverici, adds: “Şişecam Group is one of the most established businesses in Turkey and is a global player in all key areas of the glass industry, as well as soda and chromium chemicals. With a global footprint in over 150 markets, it conducts a significant volume of international trades on a weekly basis. Şişecam is excited to announce that it has undertaken the first blockchain transaction in Turkey through the use of the Marco Polo’s blockchain-based payment platform, and the Group continues to innovate and use all the digitally available solutions to provide the best service and experience to its overall ecosystem including its customers and suppliers.”