R3 tests Blockchain trade finance platform

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It follows from the news that the companies refer to the press release as a "successful" proof-of-concept that began last September in partnership with BNP, Commerzbank and ING. The project is eventually hoped to see further expansion this year, with additional banks and third-party service providers, including credit insurers and enterprise resource planning and logistics providers, coming on board.

Companies are striving to create a "fully compatible" open-source trading network based on Corda's distributed ledger technology (DLT) of R3 and shipped via TradeIX's open TIX platform. In accordance with the release, three areas of trade financing are currently being considered: risk mitigation, payables finance and receivables finance.

According to Connie Leung, Microsoft's senior director and financial services business lead in Asia, traditional paper processing in all supply chain processes is a significant burden for business. The industry had been looking for solutions to simplify and digitize trade, making supply chain ripe for the benefits of blockchain technology, she said.

R3 is already working with Microsoft, having already moved to a deeper integration of its Corda platform with cloud-based Azure service late last year.