Batavia, which is an IBM blockchain-based global trade finance platform, has successfully completed its first live pilot transactions with corporate clients. The first transactions consisted of trading Cars from Germany to Spain and some raw materials for furniture production from Austria to Spain. It was developed jointly by a consortium consisting of Bank of Montreal (BMO), CaixaBank, Commerzbank, Erste Group, IBM and UBS.
These first transactions are important in developing Batavia into an open ecosystem using the IBM Blockchain Platform. What makes this system so important is how it provides a digital way of securing and financing international trade transactions.
The pilot transactions were done in such a way to test scalability and Batavia's ability to demonstrate their ability with diverse transaction types.
The platform is able to combine track and trace tools with risk management instruments. These are tied to key events in the supply chains and signals from IoT devices, agreed upon between buyer and seller.
Jeffrey Shell, Managing Director and Head of Global Trade & Banking at BMO, said,
"We are proud to have played a significant role in achieving this milestone – successfully enabling international trade using Blockchain. We are committed to continuing to develop innovative solutions that help our clients reach new markets; simply, safely and quickly."
Batavia covers all of the trade process and thus works to form and close the trade agreement as well as execute the smart payments. All of this is recorded on the blockchain and all smart payments are initiated automatically by specified events within the supply chain. All of these features prove that Batavia will become a solid foundation for a future trade financed ecosystem.