Banks race to launch blockchain trade platforms

“When Texas-based Tricon Energy wanted to buy Polymers from India’s Reliance Energy, the two companies avoided the usual rigmarole of phone calls, couriered documents and emails by logging into a new Blockchain system called Voltron.

Within minutes they had completed negotiations of the terms of the sale and then secured a letter of credit and advice from ING and HSBC to finalise the deal…”

This article says that at least in the area of trade finance, banks seem to be on the way to monetising the billions of dollars they have invested in Blockchain so far. However, there are two issues still to contend with: (a) there are multiple blockchain platforms in the same area eg. trade finance and there will be a wave of consolidation before the system settles down; and (b) there are various networks of blockchains for various activities eg. shipping companies like AP Moller-Maersk and Hyundai are creating a blockchain which may or may not mesh with the banks’ blockchain which in turn may not mesh with the blockchain that large agro-commodity firms like Cargill or Bunge are creating.

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