October 27, 2020

Daimler completes first deal on Marco Polo blockchain

Daimler completes first deal on Marco Polo blockchain

Automobile concern Daimler made the first transaction in the Marco Polo financial and trade network, functioning on the basis of blockchain technology. The experiment was attended by the German bank Landesbank Baden-Württemberg (LBBW).

Marco Polo network has created a purchase orderSchenck balancing systems (a subsidiary of Dürr). After the equipment was delivered, specialists entered data on the fulfillment of the terms of the contract, and the transaction was automatically completed. The Bank made the payment in accordance with the contingent liability agreement.

The Marco Polo project was created by R3 startups andTradeIX. The network operates on the basis of the Corda blockchain platform developed by R3. The trading platform was created to increase the transparency of transactions and improve operational processes. Using traditional payment services to carry out international transactions implies the use of several systems and work with intermediaries, for example, transport companies, customs authorities and insurance companies. The executives of Dürr and Daimler believe that testing Marco Polo was successful, as they managed to reduce the time required to complete the transaction, from a few days to a couple of minutes.

Schenck Susanne CFOSchlegel said that the experiment proved the high potential of digital trading and financial systems. In her opinion, the Marco Polo and Corda platforms make it easier to complete the order process and therefore benefit both parties involved in the transaction. The first testing of the Marco Polo functionality was carried out in August this year with the participation of Commerzbank and LBBW banks, as well as Logwin, a logistics company. A key feature of the network is that it automatically sends a request to send a payment after the provider fulfills its obligations.