Eight banks and blockchain technology specialist R3 have launched a new initiative named Voltron that initially aims to use blockchain technology to bring significant efficiencies to transacting letters of credit (L/Cs).

Voltron is an open platform for documentary trade and is aiming to be operational on R3's Corda Enterprise blockchain platform in 2019.

Speedier decisions

The solution was forged by a host of founding members, including Bangkok Bank, BNP Paribas, CTBC Holding, HSBC, ING, NatWest, SEB, Standard Chartered, CryptoBLK, R3 and global consultants Bain and Company.

At present, Voltron is working with four of the leading trade finance platform vendors to design and build a solution that will offer a Voltron-enabled service to their existing bank and corporate customers.

Corporate L/C collaboration

Corporate customers will be able to connect with their banks and trading partners via a single, simplified channel, for both issuance of L/Cs and the presentation or exchange of documents across an open network.

Collaboration with corporate customers has been critical in shaping the initiative, with a successful live L/C transaction earlier this year with Cargill (DC World News, 14 May 2018) demonstrating the viability of the platform.

Voltron will continue to extend its corporate customer programme, as it is in discussions with a number of corporates.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.