IBM’s Blockchain-based Batavia platform to rewrite global trade finance
Batavia is a global trade finance platform based on blockchain and built on the IBM Blockchain Platform. It is jointly developed by a consortium of five banks — UBS, Bank of Montreal (BMO), CaixaBank, Commerzbank and Erste Group — and IBM as an equal member to the banks, in deliberation with transportation industry specialists and the banks’ customers. The consortium proposes to support the creation of multi-party, cross-border trading networks by building Batavia as an open ecosystem that can be accessed by organizations across the globe.
IBM explains how Batavia rewires the trade finance process, "Though documents related to bills and letter of credits are now maintained electronically thanks to digital transformation, they are not always accessible to all the parties involved in the trade. And for a trade to be completed, buyers, sellers, their banks, transporters, inspectors, regulators and more must all pass off on it. Batavia helps to simplify the end-to-end process of a trade by providing a digital and automated way of arranging, securing and financing international trade transactions. Because this trade finance platform is built on blockchain, there is a single, distributed version of all documentation that is shared across the involved participants of such trade. That means everyone has the information they need to do their due diligence and complete the transaction and sees therefore the same truth like all other involved parties. This includes the closing of trade agreements and the execution of smart payments." Corporate clients have now successfully completed the first live pilot transactions on the Batavia platform
Batavia is a platform with the immense potential to transform the client activity by bringing transparency and trust to each step of the trade process. A viable product has been developed and initial pilot transactions with clients have been completed favorably, the consortium prepares to focus on building out a production-ready solution.
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