Canada’s Bank Trials Blockchain To Simplify Bank Instruments Negotiation

The National Bank of Canada (NBC), a major Canadian commercial bank, intends to use blockchain to make it easy for the banks to handle banking instruments. The National Bank of Canada (NBC) is working with CGI, the IT and business consulting firm, and Blockchain-Startup Skuchain to use intelligent contracts to replace current email-based practices.

The solution is based on a combination of CGI’s Trade360 trade finance platform and Skuchain’s smart contract creation software, which is based on blockchain platform Brackets.

The media report explains that the combination will “improve processing times, reduce risks and help strengthen the bank’s customer relationships.”

Regarding the use of blockchain, Patrice Roy, vice president of payments, cash management and international solutions at National Bank of Canada said

“This pilot project is a great opportunity to leverage blockchain technology to simplify the process for negotiating standby letters of credit and guarantees while making it more transparent and secure. This will enable us to offer a simple, fast and efficient experience to our commercial clients which facilitate managing their business.”

Back in April, NBC began testing JPMorgan’s Quorum blockchain platform, designed to issue financial instruments. At that time, an NBC spokesman opined that the technology has “the potential to bring about major change in the financial services industry.”