Digital Trade Chain (DTC)

2017: Announcement

In January 2017, the seven largest European banks united in creating a common financial platform for cross-border trade based on blockchain technology. The new solution is addressed to representatives of small and medium-sized businesses.

Deutsche Bank, HSBC, KBC, Natixis, Rabobank, Societe Generale and UniCredit signed a memorandum of understanding in Brussels, under which the companies agreed to jointly develop and bring to the commercial market a product called Digital Trade Chain (DTC).

Major European banks create blockchain platform for international transactions

Its goal is to simplify the settlement of international trade transactions by managing, tracking and ensuring the security of domestic and international transactions. The technology is able to connect all parties to the transaction (customer, contractor, contractors and all banks in which they are serviced) via the Internet and mobile devices.

To mitigate risks within the business, large companies often use a documentary letter of credit - the bank's obligation to provide the agreed amount to the seller on behalf of the buyer in accordance with strictly defined conditions. However, such an order is not always suitable for small firms, so they prefer to conduct transactions using bank accounts.

Participants in the new blockchain consortium claim that the DTC platform, ensuring the safety of records in the digital distributed registry, will accelerate the process of orders and settlements and significantly reduce the volume of accompanying documentation.

The project is based on the prototype of a tool developed by the Belgian bank KBC, used in international settlements and supply chains. First, the new product will be promoted by banks in the markets of Belgium, Luxembourg, France, Germany, Italy, Holland and the UK.^[1]