German Commerzbank & Steel Company Thyssenkrupp Performed Forex Transaction through Blockchain
A €500,000 Forex through blockchain has been performed by German bank Commerzbank and steel company Thyssenkrupp.
Thyssenkrupp transferred €500,000 via Corda platform, a distributed ledger technology (DLT) of the R3 blockchain, through an EUR/PLN FX Forward arrangement, or an agreement securing a conversion scale between the euro and the Polish zloty sooner or later. Since the blockchain utilized will store the whole exchange as a solitary unchangeable record, neither the enterprise nor Commerzbank need to stress over exchange compromise, the news association said.
As per the website of Commerzbank the usage of blockchain technology underlying the virtual currency Bitcoin, can help reduce delays and manual errors, and significantly reduce operational risks in currency transactions.” This eliminates the need to synchronize transactions because the transaction is stored as one immutable record.
Commerzbank manager Nikolaus Giesbert said:
“Significant resources are dedicated to resolving the issues that occur during the matching process. This deal demonstrates how the use of distributed ledger can transform and digitalise the processes in this space.”
Banks and financial institutions around the world have recently launched blockchain pilots for various types of transactions. In the end of April, Spanish Bank BBVA has become the first universal Bank that issued the credit on the blockchain. The Bank stated that the use of the distributed Ledger reduced the processing time of the loan to € 75 million from “days to hours”. Another bank – Argentinian Banco Masventas (BMV) recently announced a partnership with blockchain-based financial services provider Bitex, which will enable clients to use Bitcoin as an alternative to SWIFT in cross-border transactions.