IBM’s Blockchain-Based Trade Finance Platform
IBM’s Blockchain-based trade finance platform is designed to create multi-party cross border trading various networks worldwide. Currently, the trade finance procedure in this region demands nearly 200 documents and the time taken to complete the procedure is around two weeks. Using IBM’s new platform, one can finish the procedure in real-time without much effort. Any corrections required can be made in a single day. That would reduce operational costs by 30-40%.
Additionally, the blockchain-based trade finance platform allows the stakeholders to efficiently manage different roles including that of importers, exporters, certifications, insurance, logistics, and more. That means that a trader from a South Asian country (such as India or Sri Lanka) can come to the platform, make a purchase, and complete all the procedures right there, without running to different people for fulfilling the requirements. While the manufacturers, suppliers, distributors, and logistics work in silos, the IBM trade finance platform will unite everyone on a single platform.
In early 2020, IBM acquired a 7% stake in blockchain-based trade finance solution, we.trade that is owned by 12 major financial institutions. we.trade helps automate trade finance processes and provides traders with access to insurance, credit rating, and logistics services. This would help traders, initiate orders, manage the order-to-payment process, and get funding.
IBM has also partnered with a group of prominent global retailers and food suppliers to develop a Blockchain consortium, in a bid to prevent the circulation of contaminated food among consumers. Similar to the incumbent trade finance package, in 2018, IBM launched a Blockchain platform to support the insurance industry called the openIDL (open Insurance Data Link), an open blockchain network that streamlines regulatory reporting and provides new insights for insurers, while enhancing timeliness, accuracy, and value for regulators.
IBM’s newest blockchain solution, Rapid Supplier Connect was launched in April 2020 to help curb medical supply chain shortages during COVID-19. It will help healthcare organizations and government bodies identify new medical suppliers that can bridge the gap pf equipment and medicine shortage for the pandemic relief.
Zerone develops and integrates blockchain projects that are secure and tamper-proof, guaranteed to accelerate growth and improve ROI. Learn more about our previous project here.