Global banking and financial services firm UniCredit has completed its first Italian transaction on we.trade blockchain-based trading platform.
Via we.trade blockchain-based trading platform, which is claimed to be the first of its kind in the Italian market, UniCredit enabled a tinplate trade between metal packaging producer Gruppo ASA and its supplier Steelforce. Belgium’s KBC Bank has supported the transaction.
The payment will be automatically initiated by creating smart contract on the we.trade platform. The transaction will be based on the terms agreed by the counterparties after the buyer confirming delivery of the goods.
UniCredit global transaction banking head Luca Corsini said: “we.trade is a success story in the field of inter-bank collaboration and we are glad to announce the first transaction of its kind on the Italian market.”
Focusing more on the SME segment, the we.trade enables to detect identify trusted counterparties to establish new commercial relations.
The platform offers full transparency on transaction and shipment status, as it digitalizes the whole process from order creation to payment execution.
Companies are also having flexibility to access financial services provided by their bank within the platform.
They can access services such as bank payment undertaking (BPU) under which the buyer’s bank offers the seller with an irrevocable undertaking to pay the invoice at maturity date, as well as BPU financing under which the seller’s bank provides financing by discounting the BPU of which they are a beneficiary.
As a result of the platform’s efficiency, Gruppo ASA and Steelforce have finalized the transaction within few days.
Gruppo ASA chief financial officer Guido Cicognani said: “Steelforce is the first partner in this initiative, and we will extend the use of this platform to other interested suppliers and customers in Europe.”
In 2017, the we.trade project was commenced with UniCredit and other six primary European Banks such as Deutsche Bank, HSBC, KBC, Natixis, Rabobank and Société Générale, then latterly Nordea and Santander.
Another four European banks such as CaixaBank, Erste Group, Eurobank and UBS have also joined the project, following the decision of the consortium to establish the we.trade Innovation DAC company in 2018.
Currently, 13 European banks carrying out operations in 14 European countries are part of the project.