The German-based Commerzbank conducts a 500 000 euros foreign exchange transfer with R3’s Corda platform, reported Coindesk on May 24.
Thyssenkrupp transferred €500 000 with R3’s Corda blockchain-based platform through a contract locking in an exchange rate between the euro and the Polish zloty. Neither of the two parties has to worry about transaction reconciliation since the blockchain will store the whole details of the transaction as a single immutable record.
That is possible since confirmation of the deal was sent immediately to Thyssenkrupp. The upcoming deals on the blockchain platform will also be confirmed immediately because it cuts down delays and manual errors as like in the current reconciliation process.
Nikolaus, Commerzbank manager mentioned in a statement that reconciliation is “a major issue for banks” once it comes to foreign exchange transactions,
“Significant resources are dedicated to resolving the issues that occur during the matching process. This deal demonstrates how the use of distributed ledger (blockchain) can transform and digitalise the processes in this space.”
Even if the transaction was successful, Commerzbank still wants to study more deeply the technology, particularly the “technical, regulatory and legal requirements need to be further developed” so that the “efficiency benefits of using blockchain” will be fully maximized.