India’s second largest private sector bank, ICICI Bank announced on Tuesday that it had on-boarded over 250 corporate companies on its ‘custom-made’ blockchain platform to conduct domestic as well as international trade finance transactions.
The companies have signed up with the Indian banking giant’s blockchain application to experience a more time and cost efficient and a safe way of carrying out domestic and international trade. The companies are therefore now using the technology for trade finance which includes payment of salaries to the employees, payments to domestic vendors and payment for the raw materials and others, press release of the company said.
The managing director and CEO of ICICI, Chanda Kochhar said that she foresees the usage of blockchain technology to have immense potential to simplify the paper-intensive trade finance process.
She further stated larger goals towards wider implementation of the blockchain applications by stating,
In another initiative, we are also collaborating with peer banks and other partners to create a comprehensive ecosystem in the industry using blockchain and evolve common working standards to contribute to the even greater adoption of this initiative.
ICICI added that its participating banks would be able to view data for such transactions in real time by using its blockchain application. The buyers, sellers and other parties will also be able to track documentation, authenticate ownership of assets and execute a trade finance transaction via a series of encrypted and secure contracts.
The inclusion of the 250 corporates comes in line with the bank’s successful completion of undertaking blockchain based transactions in domestic/ international trade finance in partnership with Emirates NBD in August 2016.