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R3 and TradeIX develop open account trade finance DLT business network

First Published 26th September 2017

R3 and trade finance technology firm TradeIX have announced an initiative focused on the overhaul of open account trade finance infrastructure

David Rutter, R3

David Rutter, R3

New York, London, Singapore - The initiative is a joint undertaking between R3, TradeIX, and twelve financial institutions including Bangkok Bank, Barclays, BBVA, Bladex, BNP Paribas, Commerzbank, CTBC Bank, ING, Intesa Sanpaolo, Shinhan Bank, Royal Bank of Scotland and Wells Fargo.

R3, TradeIX and the participating banks are developing an end-to-end open account trade finance business network which will be powered by TradeIX and R3's Corda distributed ledger platform. The prototype will be customised to meet the needs of participants across multiple geographies.

This initiative will provide open account trade solutions to include a suite of trade specific APIs and technology tools, a rules engine, and an open, standard core infrastructure for trade data, contracts, and transactions.

Financial institutions will be able to automate pre- and post-shipment financing and risk mitigation for corporate buyers and sellers around the world. In turn, corporate buyers and sellers gain access to API-driven technology solutions that can help simplify trade, improve visibility into trade flows, and provide access to much needed credit and risk mitigation services at critical points in the trade lifecycle. The infrastructure is designed to integrate with existing platforms as well as R3 and other ecosystems.

David Rutter, CEO of R3, comments: "Earlier this year R3, TradeIX and a core group of R3 members teamed up to redesign the infrastructure behind open account trade finance utilising our Corda platform and the TIX-Platform of TradeIX. Existing trade finance infrastructure is in serious need of an upgrade, and this project is a big step towards the adoption of reliable, efficient and standardized processes for the entire sector."

R3 also announced that the International Trade and Forfaiting Association (ITFA) is joining the R3 network and will be involved in this project and others. ITFA is a global association for the trade receivables and supply chain finance industry with over 170 members.