Commerzbank and the German multinational conglomerate Thyssenkrupp has successfully completed the exchange transaction with blockchain platform, according to Reuters.
Thyssenkrupp transferred 500,000 euros to the platform via Corda R3 EUR/PLN FX forward deal or contract, fixing the exchange rate between euros and Polish zlotys at some point in the future. Since the blockchain will be used to store the entire transaction as a single permanent record, neither the Corporation nor Commerzbank does not have to worry about the reconciliation of the transaction reports
This is due to the fact that the transaction confirmation was immediately sent to Thyssenkrupp, the report said. Future transactions in the blockchain will also immediately be confirmed, which will reduce both delays and manual errors that inevitably arise in the context of the ongoing settlement process.
Manager Commerzbank said that reconciliation is «a major problem for banks,» when it comes to currency trade. He continued:
«Significant resources are allocated to address problems that arise during the mapping process. This deal demonstrates how the use of distributed register (blockchain) can convert and digitize processes in this area.»
According to Reuters, despite the success of the test transaction, Commerzbank wants to further study the technology. In particular, the «technical, regulatory and legal requirements should be modified» to fully implement «the advantages of effective use of the blockchain».
The implementation of transfers across the blockchain is becoming increasingly popular for large companies and international corporations. Recently Allianz insurance company announced that is testing an internal token to transfer money between their branches, in order to avoid currency conversion and other operating expenses. Furthermore, the Bank Santander has launched a
international payment application for retail customers on the basis of xCurrent – blockchain technology Ripple. In February, the Ripple team announced that Itaú Unibanco, the largest Bank in Brazil and Latin America by market capitalization, will use the system xCurrent on the blockchain Ripple for processing international payments and remittances.