Nordea has joined blockchain-based trade finance platform we.trade as a founding partner.
The platform aims to employ blockchain – or Digital Ledger Technology (DLT) – to facilitate international trade by connecting all parties involved in the supply chain.
Participant banks so far include Banco Santander, Deutsche Bank, HSBC, KBC, Natixis, Rabobank, Societe Generale and Unicredit.
The platform is expected to launch in Q2 2018, after test runs with selected customers from each bank. Beyond the nine founding members, we.trade said it would welcome other banks as well.
Ville Sointu, head of DLT and blockchain at Nordea, said: “In the current broad landscape of blockchain technology based initiatives in trade finance we see we.trade as a standout in its focus and realistic execution strategy. We’re looking forward to providing a Nordic perspective to the future of trade finance.
Patrik Zekkar, head of trade and working capital management sales at Nordea, added: “We are delighted to join we.trade and look forward to delivering its benefits to our customers. It promises to simplify trade finance processes for SMEs by addressing the challenge of managing, tracking and securing domestic and international trade transactions.
“With we.trade, SME customers will secure and accelerate the order-to-settlement process, as it is quicker than the traditional exchange of documents, and with the required traceability. The platform’s end-to-end transparency will give SMEs confidence to initiate trade with new partners in their home market or internationally.