Voltron Blockchain trade finance initiative Finishes Pilot With 50 banks & Corporates
Voltron, a blockchain-powered trade funding project, recently finished testing the platform through simulation of various digital letter of credit transactions with over 50 banks and corporations. The simulation of letter of credit transaction on R3’s blockchain platform was performed in 27 nations on six continents.
Formally revealed in October 2018, Voltron originally started as a blockchain initiative within R3 consortium. Founding participants include Bangkok Bank, BNP Paribas, HSBC, ING, NatWest, SEB, Standard Chartered, Bain, CryptoBLK, and R3.
Voltron introduced an accessible documentary trade platform focusing initially on developing a blockchain application for generating, distributing, sanctioning and receiving letter of credit (LC). By using R3’s Corda, it seeks to digitalize the LC procedures which can considerably reduce handling time and expenses.
Building on past successful live operations, Bain, CryptoBLK and R3 collaborated on Microsoft’s Azure cloud platform was used for the recent six-week trial, performed across 27 nations on six continents.
9% of respondents said the model named Voltron, will boost and minimize the expenses related to the cost of their credit cards operation. Moreover, 86% of them think that conventional system shortfalls are becoming unacceptable. The firm argues that Voltron slashes the implementation period from 5-10 days to under 24 hours.
R3 says that, as a consequence of adopting the latest system, 61% said they are inclined to transition trade flows to “open account,” an alternative that is supposedly more risky for exporters.
The participants in the trial project include ABN Amro, Alfa Bank, Banco de Crédito del Perú-BCP, Banorte, Bci, China Everbright Bank Hong Kong Branch, CIB, Commercial Bank of Qatar, Scylla, CommerzBank Ekman & Co, MUFG, LH Trading, Natixis, RBI, National Bank of Egypt, Societe Generale, SABB, Standard Bank, and The Saudi British Bank.
The system was supplied through Bain, CryptoBLK, and R3 partnerships on Microsoft’s Azure cloud platform. Voltron is intended to be consistent with both Corda and Corda Enterprise, replacing conventional financial ties and networks with a common directory.
In March, UK-based finance company HSBC attempted to introduce Voltron in South Korea to banking partners. Kuala Lumpur-based Bursa Malaysia is also collaborating on a blockchain-enabled security lending and borrowing proof-of-concept in collaboration with Hong Kong-based Forms Syntron Information, the technology partner of the stock exchange.