The blockchain financing industry is constantly being revolutionized, and more and more companies are becoming a part of this increasingly digital and decentralized financial world. The French bank Natixis recently announced that it has entered the R3 trade finance initiative known as Marco Polo.
R3 is a company that is attempting to create many financial products and tools based on blockchain technology popularized by cryptocurrencies like Bitcoin and Ethereum. The capacity for this new technology is unknown and companies like R3 are making big leaps towards exploring the capabilities of blockchain technology in the financial market. R3 partnered with many different companies, most notably TradIX, to create the Marco Polo project which they hope will shake up the multi trillion-dollar financial industry.
The effects of Natixis becoming a part of R3 are sure to be drastic and wide reaching. Such a large bank joining a platform that already holds multiple worldwide banks stands as a testimony to just how reliable and influential the blockchain technology is for the banking industry. Anne-Cécile Delas, of Natixis said:
“We are delighted to become a member of the Marco Polo network and offer trade and supply chain finance solutions leveraging blockchain technology. This initiative belongs to Natixis’ continuous transformation plan”
The list of members on the Marco Polo system is astonishing. One of the largest banks in Thailand, the Bangkok Bank, joined the system one week before Natixis. Other banks on the system include OP financial group Paribas, DNB, ING, Standard Chartered Bank, SMBC, Commerzbank and BNP.
What does this mean for the future of finance?
R3 has this program called Corda that it has rooted the basis of Marco Polo in. It offers support for coordinating open account transactions that are designed to be combined with other networks for trading. Blockchain has a substantial influence on the entire financial and digital marketplace and for many companies they will either have to adapt to the increasingly blockchain dependent tactics and strategies or become obsolete in today’s market.
“Blockchain’s potential to transform the trade finance ecosystem has always been clear. With the Marco Polo network on our Corda platform, we are moving forward from potential to reality” Said CEO of R3 David Rutter.
There is no doubt that Natixis is becoming one of the many companies on the cutting edge of blockchain innovation. It is highly likely that more banks will be hooking their wagon to the blockchain market. Whether that be with the successful Marco Polo project or through private and more individualized initiatives.
All in all, blockchain technology has been known to revolutionize not just the cryptocurrency market, but it is also having a huge and widespread interaction with the finance market. Banks are gaining popularity and support just for trying out similar initiatives like Marco Polo. Natixis proves that more and more large banks are becoming a part of the massive blockchain experiment.
There is no doubt that blockchain still needs to undergo significant trials before it will be known as a successful financial too, but the preliminary results and initiatives have shown promise that this new and exciting technology could mean the entire industry will be getting a remodel sooner rather than later.