BNY Mellon joins Marco Polo Trade Consortium Running on R3’s Corda Blockchain
Bank of New York (BNY) Mellon, an asset management firm with over $373 billion worth of assets under its watch is currently testing the Marco Polo's trade consortium which works on R3's Corda blockchain with an aim of onboarding the client's interest. The firm is planning to move into live production as soon as possible.
BNY currently works with over 1,400 financial institutions and its partnership with Marco Polo could provide a white-labeled trading platform to its clients who do not want to get into the hassle of creating their own trade operations. Joon Kim, global head of trade finance at BNY Mellon said,
“Our hope is that the business requirements of our clients will meet with what Marco Polo has to offer, and our intention is to move into live production A-S-A-P.”
Earlier this year in September BNY announced the expansion of its trade services to KeyBank, which is a US regional bank with $416 billion in assets. The trade services play a core role in BNY Mellon's transaction banking business consisting of several key products of banks like payment and liquidity products.
What would Marco Polo tie-up offer
Marco Polo is a blockchain trading consortium set up by R3 blockchain firm and TradeIX in order to provide real-time settlement along with trading transparency. BNY chose Marco Polo for its efficiency and proven record in open account financing which makes up almost 85% of trade finance that BNY has to offer.
This is not the first time when BNY has made a tie-up with a blockchain or crypto service providers, earlier in 2017 it participated in a marketplace with four other banks that use Corda as a hub for administering syndicated loans. Apart from that it also manages private keys for Bakkt's bitcoin futures contracts.