Yesterday UniCredit
announced the first Italian transaction on the blockchain trade finance platform
we.trade. The joint venture company is owned by 13 European banks and operates in 14 countries.
The transaction involved Steelforce in Belgium supplying tinplate to metal packaging producer Gruppo ASA in Italy. KBC Bank financed the seller, and UniCredit supported the buyer. Once the buyer confirms receipt of the goods, the payment will be triggered automatically using a smart contract.
we.trade, which initially targets SMEs, provides two products. Firstly a Bank Payment Undertaking (BPU) where the buyer’s bank gives an irrevocable commitment to pay the invoice at maturity. And BPU financing involves the seller’s bank providing finance by discounting the amount owed in the BPU.
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