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Daimler, a German automotive corporation and parent company of Mercedes Benz, and machine builder Dürr AG have successfully processed a trade finance transaction via Marco Polo, a blockchain-based trade finance network.
According to a press release, the companies have digitally processed the data transfer to secure payments from a commercial trade transaction using the blockchain-based platform. LBBW, a founding member of Marco Polo, provided the financing and the payment commitment.
The transaction involved the order and delivery agreement for a balancing system from Schenck, a subsidiary of Dürr, via the Marco Polo network. The payment was secured by a conditional payment commitment by the buyer’s bank.
Once the equipment was delivered, the associated order fulfillment data were uploaded into the network and automatically reconciled with the previously agreed transaction data. This, in turn, triggered the irrevocable payment obligation.
Furthermore, using R3’s Corda blockchain platform, the entire data flow was mapped in an efficient and transparent manner. To prepare the first phase of live-production, the back-end integration into the bank’s management systems were also tested for the first time, the release said.
The pilot transaction demonstrated that blockchain technology helps to streamline the process of securing payments from foreign commercial trade transactions, making them faster and simpler. The process was accomplished within minutes instead of days.
“This pilot project between Dürr and LBBW is an important step for us to evaluate future possibilities of blockchain technology in this field, to digitize the trade finance workflow and make it more efficient and transparent,” Jürgen Vogt, director treasury controlling, analytics & standards of Daimler AG.
“Innovative platforms and technologies such as Marco Polo und Corda allow us to reduce complexities in order fulfillment - to the benefit of all participants,” Susanne Schlegel, CFO of Carl Schenck AG and Dürr Division Measuring and Process Systems, added.
This marked the third pilot transaction for LBBW via Marco Polo. The two previous business deals involved industry partners Voith and KSB.
