Blockchain
BNY Mellon Utilizes Blockchain to Digitize Working Capital in Global Trade Finance
BNY Mellon has joined a consortium working to introduce blockchain technology into international trade finance and digitize how working capital is provided to both suppliers and buyers across the globe.
Through its participation in the Marco Polo Network, BNY Mellon is now able to more efficiently insert liquidity into the international supply chain, providing supply chain finance solutions including both payables financing and receivables discounting to suppliers shipping goods and services to their buyers around the world.
The Marco Polo Network is a consortium of approximately 45 banks that provides an open software platform for trade, payments and working capital financing to banks, corporates and other market participants. It is a cloud-based blockchain-powered network that allows the seamless, secure and fast exchange of trade data assets in a multi-channel environment.
Utilizing Marco Polo, BNY Mellon will not only provide financing to suppliers, but will also have real-time visibility into trade finance instruments and their status, such as purchase orders and invoices.
Real-time visibility significantly speeds up the trade finance workflow. On the blockchain, the moment that both parties agree that the transaction terms are correct the trade is confirmed in real time. This means the data in trade documents are checked, matched and confirmed by both parties near instantaneously, enabling the faster delivery of working capital to finance the trade by liquidity providers like BNY Mellon.
Digitization delivers particularly pronounced efficiencies for large buyers such as big box retailers that may issue tens of thousands of purchase orders each day and that previously had to rely on an antiquated paper and email-based workflow to secure trade financing.
“Blockchain has the potential to transform the trade finance industry by replacing multiple systems with a single shared record through one distributed ledger. As all participants in the transaction will be immediately updated of each development in the trade lifecycle, this enables us to extend working capital more quickly and more securely to clients,” says Joon Kim, Global Head of Trade Finance Product & Portfolio Management in BNY Mellon Treasury Services.
Utilization of the blockchain reduces the risk that the same trade instruments could be used to secure working capital from multiple liquidity providers. This reduced credit risk increases confidence and the creditworthiness of clients and may translate into a better rate to obtain working capital.
Digitization and the multi-channel Marco Polo network also opens up the potential for the development of a liquid secondary market in trade finance, in which a trade instrument that is already subject to financing can be sold to an alternative liquidity provider consortium member, freeing up more capacity for additional working capital to be extended.
Finally, the blockchain enables counterparties to more seamlessly monitor whether trades align with their environmental, social and governance (ESG) principles. The Marco Polo network provides users with an independent view into a large number of corporations and applies an ESG score to each company that can enable participants to determine whether a company meets their environmental, social and governance values.
This includes the ability to track the labor conditions for workers within the supply chain, identify whether raw materials were obtained from prohibited areas such as conflict zones and monitor the carbon emissions of vehicles being used to ship orders.
Since the Marco Polo Network operates as an open platform that allows for connections through APIs, the network can accommodate a wide variety of Enterprise Resource Planning (ERP) systems that suppliers and buyers across the world may be utilizing as part of their trade financing process.
“We are particularly pleased to be a participant in the Marco Polo Network which will enable clients to interact with us and access financing in an open architecture compatible with most major ERP systems,” adds Kim.
Blockchain-based trade finance is just the latest step in BNY Mellon’s drive to expedite the paper-to-digital journey and make payments and trade more efficient for clients. Last month the firm announced that Verizon has become the first client to rollout Real-Time E-Bills and Payments to customers, making it the first US corporate to extend this innovative new technology into the retail consumer space.
Blockchain
Victory Square Technologies Reports 2023 Financial Results
Blockchain
United States B2C E-Commerce & Online Payments Market Report 2024 – Retail E-Commerce Sales are Poised to Surpass EUR 1.5 Trillion by 2027
Blockchain
MicroStrategy boosts Bitcoin holdings to 214,400 BTC with $7.8m purchase
MicroStrategy has increased its Bitcoin holdings to 214,400 BTC with a recent purchase of $7.8 million worth of the cryptocurrency. This move further solidifies MicroStrategy’s position as a major institutional holder of Bitcoin and demonstrates its continued bullish outlook on the digital asset.
MicroStrategy, a publicly traded business intelligence firm, has been actively accumulating Bitcoin as part of its treasury strategy, viewing the cryptocurrency as a long-term store of value and hedge against inflation. The recent purchase of $7.8 million worth of Bitcoin adds to the company’s already substantial holdings, reaffirming its confidence in the future potential of the digital currency.
MicroStrategy’s ongoing accumulation of Bitcoin reflects a broader trend of institutional adoption and investment in the cryptocurrency space. As more companies recognize the value proposition of Bitcoin as a hedge against economic uncertainty and fiat currency devaluation, they are increasingly allocating funds to acquire and hold the digital asset.
Overall, MicroStrategy’s decision to boost its Bitcoin holdings with a $7.8 million purchase underscores the company’s conviction in the long-term viability and potential of Bitcoin as a strategic asset. This move is likely to further encourage other institutions to explore Bitcoin as a component of their investment portfolios, driving continued growth and adoption in the cryptocurrency market.
Source: crypto.news
The post MicroStrategy boosts Bitcoin holdings to 214,400 BTC with $7.8m purchase appeared first on HIPTHER Alerts.
-
Blockchain7 days ago
39% of Canada’s institutional investors have exposure to crypto: KPMG
-
Blockchain6 days ago
Existing Blockchains Can’t Adopt Post-Quantum Cryptography Without Significant User Impact, Says Johann Polecsak
-
Blockchain7 days ago
BounceBit (BB) Megadrop Now Open: Participate by Subscribing to BNB Locked Products or Completing Web3 Quests
-
Blockchain Press Releases2 days ago
CoinRoutes partners with Coinbase International Exchange to improve institutional access to perpetual futures
-
Blockchain Press Releases2 days ago
Bosera HashKey Bitcoin and Ether Spot ETFs Officially Launch on HKEX with Two-Way Investment Flexibility
-
Blockchain3 days ago
RFK Jr.’s blockchain idea, Ethereum ETF approval in question, Bitcoin’s unlikely bull run | Weekly Recap
-
Blockchain6 days ago
FBI warning against crypto money transmitters ‘appears’ to be aimed at mixers
-
Blockchain7 days ago
FAIRWINDS Credit Union Joins Metal Blockchain’s Banking Innovation Program