Blockchain Revolution Series: Lloyds Bank Eyes on Blockchain Platform To Improvise Trade Finance Business

Lloyds Bank has made an announcement of the partnership with a blockchain platform, ‘Komgo’ to streamline its commercial banking division.

Lloyds Bank, which is one of the “Big Four” clearing banks in the U.K., revealed their plans of collaboration to utilize the Komgo’s blockchain platform to equip themselves a swift international commodity trade finance.

The announcement reveals that “Komgo’s DLT platform digitizes and streamlines the commodity trade finance process, enabling businesses to quickly and automatically exchange data and associated documents across a wide range of solutions – from letters of credit and KYC management to receivables discounting – in a digital, secure and decentralized way.”

The CEO of komgo, Souleïma Baddi said “we are thrilled to welcome Lloyds Bank on komgo’s network and very excited to support their clients to get the best out of it in the following months.”

Of late, the blockchain technology has been considerably drawing the attention of Trade finance domain. In yet another instance, the renowned global banking giant HSBC already clarified as to how the world’s first commercially viable blockchain trade finance transaction on the Corda platform was successfully executed, that was developed by the R3 blockchain consortium. Furthermore, they have performed the first blockchain-based letter of credit transaction also which is denominated in Chinese yuan. 

From “letters of credit” to “bills of lading”, merchandise trade today is heavily reliant on paper documents. In the era of a digital world, the connected universe, there is a growing need to modernize trade’s many paper-based processes, advanced FinTech options like blockchain gamut has complimented many industries. Especially, in trade finance, the digitization would reduce bureaucracy, improve security, minimize errors and make it easier to amend documents, ultimately saving time and money.