National Bank Of Canada & CGI Launching Blockchain-Based Platform For Trade Financing
The national Bank of Canada has teamed up with technology giant CGI to pilot a blockchain platform for negotiating stand-by letters of credit and guarantees.
The pilot project is designed to simplify the process of negotiating complex conditional agreements used by banks to secure financial transactions that are currently conducted via e-mail, often resulting in errors and delays.
CGI has integrated their trading platform to Finance with the technology of the blockchain download Skechain. This allows the National Bank of Canada to offer its clients trade Finance services in digital form, initiating and completing negotiations on stand-by letters of credit and fully guaranteeing smart contracts.
This end-to-end process with the support of the blockchain will improve processing time and reduce the risks, say the partners. Using pre-approved Bank templates and distributed Ledger negotiations, the platform automates the coordination required to issue a stand-by letter of credit or guarantee.