According to a press release published on September 19, 2019, U.S. financial institution Bank of America is joining Marco Polo, a network that aims at enhancing international trade affairs thanks to the blockchain technology.
Bank of America Joins the DLT Trade Consortium
U.S. banking giant Bank of America, a long-standing provider of finance solutions with offices scattered in every corner of the globe, has just announced to be joining the Marco Polo network.
Marco Polo is one of the largest and fastest-growing consortia that leverages Corda distributed ledger technology (DLT) to provide innovative solutions to increase global trade efficiency.
The mission of the collective is to enable more transparent, smarter and better-connected trade finance procedures thanks to blockchain-based applications. Marco Polo offers access to innovative solutions that mitigate risk including operations such as receivable discounting, payment commitment and payable finance programs. Bank of America’s move is part of an effort to explore better services for their clients.
A Fast-Growing Network
Bank of America, which is ranked one of the top four banks in the US with total assets of $2,396 billion at the end of June 2019 and a $313.5 billion market cap at press time that makes it the 13th largest company in the world, isn’t the only bank giant in Marco Polo’s network.
The consortium already enjoys other reputable members including: BNP Paribas, Commerzbank, ING, LBBW, Anglo-Gulf Trade Bank, Standard Chartered Bank, Natixis, Bangkok Bank, SMBC, Danske Bank, NatWest, DNB, OP Financial Group, Alfa-Bank, Bradesco, BayernLB, Helaba, S-Servicepartner, Raiffeisen Bank International, Standard Bank, Credit Agricole and National Bank of Fujairah.
According to Marco Polo’s CEO David E. Rutter, who also founded tech startups R3 and TradeIX, Bank of America move may trigger other American banks to join the network.
The consortium also witnessed the entrance of another payment giant earlier this month: credit card provider Mastercard became a member claiming that it will provide an access point to Marco Polo’s working capital.
Blockchain technology is rapidly attracting growing interest from trade finance projects thanks to its value-added benefits. Advantages range from increased consensus techniques, enhanced cost-efficiency, and overall simplification of the processes. Alongside Marco Polo, trade finance market developing blockchain applications already counts around 30 consortia including Corda-based Voltron, Ethereum-based CargoX and eTrade Connect for the Asian market.
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