Major Turkish Bank Isbank has carried out its first-ever international trade monetary transaction with German Commerzbank deploying the blockchain technology.

With this transaction, Isbank has become the first Turkish bank that has utilized the distributed ledger technology to execute international transactions. Isbank being the member of the R3 Corda platform, carried out the transaction via the Corda blockchain on the Marco Polo network.

Marco Polo is a unified network that is focused on secured payments and financing of trade transactional processes with efficiency.  

How the Transaction took place?

Isbank and Commerzbank processed the payments securely through digital data transfer. The transaction was carried out on 27 May 2020 between Isbank, Kuraray Europe GmbH, Sisecam and Commerzbank AG for supporting the trade of laminated glass interlayers from Germany to Turkey

R3 Corda Technology permits the trade transaction data to be distributed to the involved parties along with the workflow of the business. This makes the settlement process efficient than the traditional process.

Talking about the blockchain technology, Sahismail Simsek, the Isbank Deputy Chief Executive said

"Increasing security, speed, and operational efficiency in international trade, this technology is a paradigm change for foreign trade supply chains.”

Elaborating more about the pilot process on Marco Polo network he said,” Now with this pilot transaction using blockchain technology, we are starting reliable and easy period based on foreign trade."

Enno –Burghard Weitzel, Head of Product Management at Commerzbank said

“After having processed to various Marco Polo payment commitment pilot transactions last year, we are happy to have piloted with Isbank an advanced pre-live version of the platform. We ensured the technical performance and validated the workflow with our corporates to pave the way to production."

Turkey’s Crypto friendly Policies

Turkey is becoming a hot market for crypto exchanges for its crypto-friendly initiatives. In September 2019, the government had announced plans to develop a national blockchain infrastructure.

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Jayashree Ingle

CBW - External Analyst

INDIA