One of Japan’s leading banks uses blockchain technology to improve the quality of commercial financing services. The best thing is that its project is in its final stages, so it is possible that it will be launched within a few months.
Sumitomo Mitsui Banking Corporation (SMBC) is the second largest bank in Japan in terms of assets. Therefore, its most recent statement in which it was reported that the representatives of the institution were concluding a testing process with blockchain technology is extremely relevant.
This process would positively benefit its proposal to create a system focused on commercial financing, which would be built on a blockchain.
Commercial financing is an activity that focuses on leveraging resources to perform active credit operations, which allow the commercialization of goods and services, both at a large and at a medium scale.
Without a doubt, the administration of this type of activity is complex, which is why the SMBC has considered that the blockchain could be a productive and useful system. This is all because it is effective, safe and transparent, qualities really necessary to manage and administer.
Tests with Blockchain in the SMBC
Many projects have already experimented with the use of blockchain technology, achieving good results. For that reason, the SMBC joined the pioneers who experiment with blockchain. Best of all, they are already in the final stage of their tests.
In fact, when conducting their experiments, they realized that the blockchain can provide: a solution to the complexity of these processes, the storage of digital data in a secure space, free access to the network, and simpler real-time connectivity.
It is important to note that there is still no exact date for the launch of the Marco Polo project. However, during the previous tests occurred during the month of February 2019, the institution said that Marco Polo was expected to be launched during this year.
Results Obtained during the PoC
The Marco Polo project is backed by TradeIX, an open platform for global trade finance powered by distributed ledger technology that has a headquarters in New York. In addition, it has the support of some other financial institutions of great global importance.
Regarding the results obtained during the Proof of Concept (PoC), it was determined that this project will not only offer various benefits to the participants, but will also manage the following activities: giving purchase orders, generating invoices, offering relevant information and allowing the user or the various participants to see the delivery time, among others.
Regarding Blockchain Technology
The SMBC is not the only financial institution that is now working on its own blockchain projects. In fact, it has already become a trend, since more than one banking institution is developing its own systems in many countries that include China and Canada, among many others.
For that reason, it is much more than likely that other institutions of this type, as well as institutions from other sectors, will soon start experimenting with their own projects.
By Willmen Blanco