As per a press release, by joining Marco Polo, BNY Mellon wants to create "a more open and connected environment for trade finance". The US financial company plans to digitize its entire trade finance processes in order to "offer new functionalities, unleash the power of data and place customers at the centre of their ecosystem".
"We are aware that there is considerable potential in the exploitation of advanced data and technologies to transform the essential processes of trade finance to make them more efficient and secure," commented Joon Kim, head of trade finance at BNY Mellon.
Marco Polo to strengthen presence in North America with the addition of BNY Mellon
According to Daniel Cotti, Director of Banking and Trade at Tradelx, Marco Polo will strengthen its presence on the North American continent with the addition of BNY Mellon. "We are accelerating the growth and reach of the network as our members prepare and deliver programs with their corporate clients," he added.
Launched at the end of 2017 by R3 startups and Tradelx, the Marco Polo network, based on the blockchain platform Corda, allows banks and their corporate customers to reduce the costs and time of commercial transactions while limiting the risks.
Tradelx has developed a blockchain platform dedicated to international trade finance for companies. Based in the London capital, the startup wants to use the funds raised to hire staff and invest in the development of its platform.
Banks are trying to accelerate international trade operations
In September, the consortium welcomed the credit card provider Mastercard. It now has 38 members, including large companies such as Microsoft and Oracle, but mainly powerful banks such as BNP Paribas, Crédit Agricole, ING, and Commerzbank.
With this new application, banks are trying to accelerate international trade operations and minimize the risk of fraud in letters of credit. A format very used today in international trade but rather long to put in place (about ten days). Owing to the blockchain, the process is then automated and saves time, saves money and has a more reliable and transparent system.
International trade finance allows a company to better manage its cash flow and mitigate financial risks using appropriate methods and tools for international trade.