Big Banks Continue Banking on Blockchain
Beyond Blockchain #10: BNY Mellon & Co Expand Blockchain Footprints
One of the biggest indicators of the staying power of new technology is the number of enterprises that adopt it at an early stage. This has been the case for distributed ledger technologies (DLTs) with the past fortnight witnessing some of the world’s largest companies either establish or expand their footprint in the blockchain world.
This week’s Move Digital Beyond Blockchain brings you the latest roundup of these moves. The most notable ones involve big banks, a fact that is not surprising given that 13 of the world’s largest banks have invested roughly $3 billion into blockchain-related businesses. Thanks to some of the world’s biggest firms betting big on DLT solutions, the blockchain is well on its way to becoming the norm in all facets of business.
BNY Mellon Adopts Blockchain For Trade Finance
The Bank of New York Mellon Corporation, an American banking services firm with $2.3 trillion in assets under management, announced on October 5th, 2021 that it had joined the trade finance blockchain network, Marco Polo. Although the partnership has been in the works for two years, it wasn’t until recently that BNY Mellon became an active member.
The firm is using Marco Polo’s solution to replace the paper and email-based workflow required for providing funding to suppliers and achieve real-time visibility into a supplier’s trade finance instruments such as invoices and purchase orders. BNY Mellon aims to finance trade requests automatically with minimal manual intervention.
Blockchain use also helps BNY Mellon establish a single source of truth. From ensuring trade instrument validity and exclusivity, to ensuring the fulfillment of partner ESG goals, the blockchain is helping BNY Mellon achieve its efficiency and sustainability goals.
10 Major Banks Join Marketnode for Blockchain Bonds
Marketnode is a joint blockchain venture between the Singapore Exchange (SGX) and multi-billion investment company, Temasek. Late last month, the venture announced it had onboarded 10 major banks including BNY Mellon, BNP Paribas, Barclays, HSBC, Orient Securities International, Deutsche Bank, HSBC, Deutsche Bank, Citi, Standard Chartered, Societal General and UOB.
These banks will be early testers of an enterprise blockchain fixed income solution developed by Marketnode. The venture aims to automate the issue and management of these securities while removing the need for excessive manual processes. The use of smart contracts allows security covenants to be tracked automatically and banks can ensure optimal execution. This is in stark contrast to the current method where settlement could take up to two days and involve multiple intermediaries.
Auto1 FT Rolls Out Smart Contract-Based Car Financing in Europe
Berlin-based Auto1 FT will leverage blockchain to eliminate paperwork and manual input into its car financing business. The startup uses the Ethereum blockchain to store documents, files and other pertinent data for any vehicle that it finances.
Rather than using paper legal agreements, Auto1 FT plans to provide all vehicle-related contractual details via blockchain-based smart contracts. Given the inherently transparent and immutable nature of these contracts, buyers can rely on the fact that data such as credit scores, previous owner history, and fees are reliable.
Auto1 FT Managing Director Taimur André Rashid believes the use of blockchain “reduces the total expenditure and documentation involved in financing a car to a minimum.” The solution is also set to offer increased data security and high efficiency to car dealers working with the company.
Colchis Capital Adopts Blockchain for Real Estate Management
US-based real estate investment firm Colchis Capital has partnered with blockchain startup Bison Trails to explore the use of the technology in its business. Potential use cases include providing Colchis Capital with real-time reporting on cash flow generated by properties and portfolio yield tracking. Transparent data availability allows Colchis to provide investors with low-cost financing and greater insight into real-estate and related assets under its management.
Colchis Capital will be using a blockchain platform, Provenance, to design the solution. However, Bison Trails will provide node infrastructure to process transactions and build a full technology stack that will connect to the blockchain. Although not part of the initial deal, Colchis Capital may also explore the use of blockchain to tokenize real estate properties, making ownership more democratized.
Latest Blockchain Investments
Swiss Blockchain Firm Raises Almost $2.5M: Authena is a Swiss-based startup that provides blockchain-based solutions for tracking supply chains. The firm recently closed a funding round where it raised 2.3 million CHF (appr. $2.47 million) from angel investors based in Switzerland and the United Kingdom, as well as the US innovation fund Ecliptic Capital. Athena will use the new funding to ensure continued growth and design new prototypes for major clients.
Billionaire Orlando Bravo’s Firm to Invest in Blockchain Tech Companies: Thoma Bravo, the investing vehicle of Puerto Rican billionaire Orlando Bravo, announced a move to invest in blockchain-focused companies. According to the billionaire, blockchain provides “better use cases” for solving real-world problems. He specifically noted that his firm “will be big players on the buyout side […] especially around blockchain technology.”
Discover Where Blockchain Can Significantly Improve Your Business
At Move Digital, we offer professional guidance to enterprises that want to map out or deploy a blockchain strategy. We have assembled a team of experts that will carefully discuss your business objectives with the goal of determining key operational areas where rolling out a DLT-solution can bring significant results. If you need assistance getting started with blockchain in your organization, feel free to send us an email