The Voltron initiative, built on R3’s Corda blockchain platform, has completed global trials which saw over 50 banks and corporates participate in the simulation of multiple digital Letter of Credit transactions across 27 countries on six continents. Voltron uses blockchain technology to reduce the time it takes to execute the entire process of paper-based Letter of Credit from 5-10 days to under 24 hours. 96% of participants in the trial said Voltron will accelerate their Letters of Credit process, improve efficiencies and reduce cost.
Among the banks who participated in the trial included Commercial Bank of Qatar, National Bank of Egypt, SABB (Saudi British Bank) and other international banks who participated in 6 week trial. The trial was delivered by a partnership of Bain, CryptoBLK and R3 on Microsoft’s Azure cloud platform. This trial builds on a number of successful live transactions on Voltron in 2018 and earlier this year. The transactions demonstrated the improved speed and reliability of Letters of Credit.
Denis Dodon, Head of CIB Innovations, Alfa Bank, said: “The greatest point which is necessary to be stated is having a holistic overview for the entire process of the DC lifecycle. Everything is done in the same interface, which is connected to all the workflow participants, information is shared instantly, what will significantly expedite the transaction, optimizing working with documents, which could be rectified in an instant way should there be any discrepancies identified. Corda based DLT environment creates values to every participant, it really works in a business logic named by R3 as ‘I see what you see’”
Chris Sunderman, blockchain initiative lead trade finance at ING and Voltron founding member bank said: “The trial has been a great collaboration between banks and corporates, R3 and CryptoBLK and it ensures a better understanding of the possibilities and benefits of Voltron: the end-to-end digitization of letters of credit. This will help in broadening the support base of Voltron and it will grow a larger and geographically well spread network of banks to adopt it, enabling an increased number of transactions in the production phase.”
David E. Rutter, CEO of R3, comments: “This latest trial is testament to Voltron’s growth in recognition as one of the world’s top trade finance applications by banks and corporates. All parties involved demonstrate an increasing commitment to be involved in the development of the technology. The success of these trials build momentum amongst all participants, and have seen us take another step closer to shaping what the future of trade finance looks like. We encourage banks and corporates across the globe to join us in the trial of the Voltron CorDapp and contact R3 or any of the Voltrom member banks and partners directly.”