UniCredit Uses We.Trade Blockchain Platform to Finalize First Cross-Border Transaction
UniCredit Finally Complete First Ever International Transaction On New we.trade Blockchain Platform
UniCredit is a major bank in Italy, and it was part of the first blockchain-based transaction for a new platform called we.trade. Before now, it was still held a pilot status, but this transaction gives it mainstream reputability.
The transaction started with GmbH, which is a German-based online retailer that ordered some items from a Spain-based supplier. According to UniCredit and their press release, this kind of transaction has never been done in Germany before now. Gianfranco, Bisagni, the leader of corporate and investment banking with UniCredit, said,
“we.trade is a success story in bank collaboration and we are delighted to announce our first transaction. Over time, we are confident that the platform will redefine trade relationships between SMEs and increase the connectivity of the financial ecosystem as a whole – something our clients stand to firmly benefit from.”
This platform was established by eight different banks in Europe, who wanted to employ the use of distributed ledger technology (DLT) to their customers’ transactions. These banks include UniCredit (who ushered we.trade out of its pilot season), Deutsche Bank, HSBC, KBC, Natixis, Rabobank, and Societe Generale.
This option allows the banks to mutually monitor a transaction from start to finish, using smart contracts for automation. Though smart contracts have been around way before the development of Bitcoin and even blockchain technology, it helps to make transactions process more quickly and protects the transparency of them.
We.trade aims to bring in additional banking partners by the end of this year, opening the door for companies to touch on uncovered international markets.