Barclays has partnered with fintech startup Wave to carry out what it claims in the first global trade transaction using blockchain technology.
Wave, an alumni of Barclays’ New York accelerator programme, facilitated a letter of credit transaction between Ornua, an Irish agri-food firm and the Seychelles Trading Company through its platform with funds sent via Swift.
The platform uses distributed-ledger technology to make the transfer through a decentralised network that all parties can see. This removes much of the paper work and inefficiency of existing financial transactions.
Barclays is calling on other banks to adopt Wave’s platform in an effort to established an industry-wide standard for how trade documentation is managed through blockchain technologies.
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