IBM (NYSE:IBM) and UBS established Batavia in 2016.They expected it to assist with the exploration of blockchain technology particularly in trade finance. Batavia prefers working through coalitions. It invited Erste Group, Commerzbank, CaixaBank and Bank of Montreal (BMO) to be a part of the coalition in the previous year.
The turn of events
UBS, Erste Group and CaixaBank are already part and parcel of we.trade. They join in as banking partners and shareholders. The rest of the members include UniCredit, Societe Generale, Santander, Rabobank, Nordea, Natixis, KBC, HSBC and Deutsche Bank. By the new members coming in, the number of shareholders moves up to twelve.
The erstwhile Batavia banks employ IBM-inspired technological infrastructure and have so far managed to undertake their operations in overlapping areas. The addition of these banks is a great move. We.trade’s position will improve by a significant margin. In fact, it becomes the biggest digital trade financing provider in production.
We.trade employs the Hyperledger Fabric in most of its operations. It has so far boosted transparency in the open account trade transactions.
Jason Kelley heads the Blockchain Services department. Kelley advocates for stronger networks since they are the guarantee for successful blockchain solutions.
Thoughts from experts
The official opines, “We are excited to see this success as a proof point that networks will continue to grow through an evolution of coming together in complementary areas to build broader ecosystems, and in many cases a network of networks.”
Kelley supports an innovative we.trade network that shares data in a secure way and also emphasizes the need to undertake activities within permissioned networks. The official looks forward to a moment where it will become possible for banks to finance the various supply chain processes with higher levels of trust and efficiency.
The Head of Group Corporates at Erste Group Ingo Bleier opined, “We’re glad that Erste Group is joining we.trade as an equal shareholder, allowing us to put together our knowledge of blockchain-based trade services.”
The cryptocurrency sector faces a lot of challenges from time to time. For instance, it gets top a point where major banks in some countries set up barriers that make cryptocurrency trading activities a nightmare. That is not a cause for alarm considering that challenges are part and parcel of any business undertaking.