Digital Trade Chain (DTC)

2017: Announcement

In January 2017, the seven largest European banks merged to create a common financial platform for cross-border trading 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, in which the companies agreed to jointly develop and bring a product called Digital Trade Chain (DTC) to the commercial market.

Europe's biggest banks create blockchain platform for international transactions

Its purpose is to simplify the settlement of international trade operations by managing, tracking and securing domestic and international transactions. The technology is able to connect all participants in the transaction (customer, contractor, contractors and all banks in which they are served) via the Internet and mobile devices.

To reduce risks in 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 argue that the DTC platform, ensuring the security of records in the digital distributed registry, will speed up order and settlement processes and significantly reduce the amount of supporting documentation.

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