Posted 2 years ago | by Ben Armstrong
BNY Mellon Joins Blockchain Based Trade Finance Network Marco Polo
American banking and financial services firm, the Bank of New York Mellon (BNY Mellon), has joined Blockchain based trade finance network Marco Polo. This is according to an announcement that was released by the Blockchain software firm on the 25th of November 2019.
The announcement went on to further claim that the BNY Mellon will conduct an evaluation program using Blockchain technology. The world of banking majors is rife with new Blockchain projects, as the technology cements itself in the established financial system.
The move is seen by many as an effort by the American banking and financial services firm to explore the application of Blockchain technology in trade finance activities with the aim of expanding its technical know-how. The adoption of Blockchain technology will see BNY Mellon digitize its operations and eliminate the need for paper-based processes.
What is Marco Polo?
Marco Polo was launched in 2017 and it is a Blockchain based software firm that was forged as a collaboration between major global and financial banking institutions with the sole objective of bolstering international trade.
According to an email to news site Cointelegraph, the network has 31 members at present and 28 of them are represented by banks while the three firms that remain are TradeIX, R3, and Mastercard. R3 is a big player in the Blockchain development space, and has members from some of the largest industries on the planet.
Piloting the Marco Polo network
More companies have begun to show faith in the network and some have gone to the extent of piloting its technology. Daimler AG, Mercedes Benz parent firm, and Durr AG, a mechanical engineering company, are among the latest companies to successfully complete a pilot transaction on the Marco Polo network.
The transaction from Durr included an order and delivery agreement from its subsidiary Schenck and the payment was secured through a conditional payment commitment by the buyer’s bank.
Other firms that have reportedly successfully piloted cross-border payments on the Marco Polo network include Alfa-Bank, Novolipetsk Steel Company and Vesuvius GmbH. Blockchain is one of the most powerful technologies to be developed in the last few decades, and it may be a transformative force in the 21st century.