Today R3 announced that with trade finance tech provider TradeIX and several major banks it moved the trade finance solution Marco Polo into 'pilot' stage. The project has the purpose of providing an open source inter-operable trade finance network. The developed in result solution is to be built with R3's Corda (distributed ledger technology product) and released with TradeIX's open platform TIX. As outlined earlier, the project at this stage addresses 3 areas of finance: risk mitigation, payables and receivables finance.
Last September R3 started proof-of-concept development, and today's announcement signalized the success of the process. The development was done in collaboration with BNP, Commerzbank and ING.
The tests ING ran as part of the proof-of-concept enabled us to see the value this solution could deliver in three separate areas of trade financing. The technology ran fast and smoothly and the positive results showed us we are on the right track and ready to take the next step by entering into a pilot.
Head of innovation, ING Wholesale Banking
Further expansion of the project is set to take place this year with the addition of credit insurers, enterprise resource planning and logistics providers. On a side note, R3 is already working with Microsoft with the integration of Azure cloud solution with aforementioned Corda.
Traditional paper processing across supply chain processes is a "significant burden" to businesses. The industry has been looking for solutions to simplify and digitize trade, making supply chain ripe for the benefits of blockchain technology.
Senior director and financial services business lead, Microsoft Asia