Eight of Europe’s largest banks have joined forces to set up Digital Trade Chain, a blockchain-based platform that they plan to use to facilitate pan-European transactions.
The Ireland-based consortium includes Deutsche Bank, HSBC, KBC, Natixis, Rabobank, Societe Generale and Unicredit. Banco Santander, Spain’s largest bank, has recently been on-boarded as the newest member, joining just before today’s announcement that the consortium will rebrand itself as we.trade.
The software was created with the goal of simplifying cross-border commerce in European countries with the help of a massive blockchain. The eight banks in the consortium will manage the software and its distribution, which they expect to roll out by the middle of 2018.
Through the we.trade platform, European distributors and manufacturers will be able to coordinate their deliveries and invoices more efficiently by working with their banks through an online platform.
The move to establish this consortium in Europe is similar to an initiative announced by IBM yesterday in which it has partnered with Stellar to provide a blockchain-based platform for banks in the South Pacific region that will allow companies to transfer money in real time.
Since the announcement, the price of Lumens (Stellar’s proprietary cryptocurrency and the backbone of IBM’s blockchain initiative) rose by 160%.
This blockchain adoption train doesn’t seem to have any brakes. Even Jamie Dimon—the CEO of JPMorgan, and a person who has continuously snubbed the idea of cryptocurrencies—sees the benefits of using a blockchain.
His bank and two others have joined to create the Interbank Information Network, which aims to leverage blockchain technology to help speed up payment processing.
Various financial institutions across the globe are “seeing the light” and adapting to the disruption that blockchain technology presents. Each one of these organizations has its unique goals and methods of application, but all of them have one thing in common: They see the potential in this new technology and want a piece of the pie.