Japan’s second-largest bank by assets, Sumitomo Mitsui Banking Corporation (SMBC), has completed a proof-of-concept (PoC) using blockchain consortium R3’s Marco Polo trade finance platform. A press release confirmed the PoC completion on Feb. 18.
SMBC, which is the only Japanese bank participating in Marco Polo, said it had partnered with Japanese multinational Mitsui & Co. to enhance efficiency in trade processes.
“[The] PoC was conducted between SMBC and Mitsui & Co. which aims to improve productivity in its trade operations, by testing modules such as Receivable Finance and Payment Commitment (Payment Undertaking),” the release explained, adding:
“SMBC expects to commercialize Marco Polo in the first half of (the financial year 2019) after verification of the PoC.”
Launched in 2017, Marco Polo is a joint venture between R3 and Irish tech firm TradeIX targeting trade finance utility using distributed ledger technology.
R3 is a New York-based group of businesses, banks and other entities founded in 2014 as a distributed technology company. At its launch in September 2015, it had a total of nine members. This January, R3 announced the launch of its Corda Network, with the consortium now made up of over 300 members.