SEB - Skandinaviska Enskilda Banken AB

10/23/2018 | Press release | Distributed by Public on 10/23/2018 01:04

Blockchain ready for use in processing letters of credit

SEB is the only Nordic bank participating in the Voltron project which will develop a blockchain-based platform for document processing in trade finance. 'This is a natural step in our ambition to use distributed ledger technology for solid business benefit,' says Paula da Silva, Head of Transaction Services.

Voltron will develop an application on a blockchain-based infrastructure platform for creating, exchanging, approving and issuing letters of credit. The aim is to modernise the manual, time-consuming processing of paper documents in international trade.

In the first phase the project will prepare for the launch of an open trading network linked to Voltron as well as a first version of the application. A number of pilots will be run together with corporate customers in this step.

'There is a vast potential for efficiency improvement in trade finance, especially in the processing of letters of credit. By using blockchain technology we can develop business and create enormous advantages for banks and our corporate customers,' says Paula da Silva.

Voltron uses the Corda infrastructure platform. This is being developed by the American blockchain company R3 where SEB is the largest Nordic investor. Paula da Silva is the represented on the company's board.

As well as the Voltron project, R3 has a number of other initiatives for using blockchain technology in financial services.