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First Turkish-German trade finance transaction using distributed ledger technology

June 8, 2020

A major Turkish bank has completed the country’s first international trade finance transaction based on distributed general ledger technologyor DLT. This is another milestone for the country’s growing blockchain efforts.

İşbank, the first Turkish bank to join the R3 Corda platform earlier this year, is now the first bank in Turkey to use blockchain technology in trade finance deals, Cointelegraph Turkey reported on June 5. With Corda blockchain technology, İşbank and Commerzbank secured payments by digitally processing the associated data transmission. The transaction took place on May 27, 2020 between İşbank, Şişecam, Kuraray Europe GmbH and Commerzbank AG and supported trading in laminated glass interlayers from Germany to Turkey.

The pilot project of the Marco Polo network, known as the collaboration network to ensure payments and financing of commercial transactions, has been completed. “Your DLT can finance foreign trade transactions in a safe and highly efficient manner. Transactions are safe and transparent and can be processed in a trustworthy environment,” said a press release from İşbank.

First Turkish-German trade finance transaction using distributed ledger technologyFirst Turkish-German trade finance transaction using distributed ledger technology

With R3’s Corda technology, business transaction data could only be distributed to parties throughout the business process. This made the settlement process more efficient compared to traditional transactions.

Blockchain enables a paradigm shift in the supply chains of international trade

Blockchain technology enables a paradigm shift in the supply chains of foreign trade by increasing security, speed and operational efficiency, Şahismail Şimşek, deputy general manager of İşbank, states:

“With this pilot transaction using blockchain technology, we are now starting a more reliable and easier time period based on data comparisons in foreign trade.”

“After we completed several pilot transactions for Marco Polo payment obligations last year, we are now very pleased to have tested a pre-active, expanded version of the platform with İşbank. We ensure the technical performance and validate the workflow with our company should be the way pave for production “adds Enno-Burghard Weitzel, Head of Commercial Product Management at Commerzbank.

Turkey, which is on the radar due to its “pro crypto” regulations in many global cryptocurrency exchanges such as Binance and Huobi, is also known for its blockchain efforts. In September 2019, the Turkish government announced plans to build a national blockchain infrastructure. Since then, the country has set the end of 2020 as the deadline for a digital lira, the digital currency of the country’s national central bank.

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