Blockchain platforms see Covid-19 trade finance opportunity
The turmoil created by the coronavirus has given blockchain trade-finance platforms a boost, but many still seem to be talking in terms of potential, rather than actual, business done.
Distributed-ledger technology-based transactions are slowly becoming more commonplace in trade finance.
Last month, Turkey’s Isbank became the first financial institution in that country to use the technology for a trade-finance transaction, for instance.
An interesting emerging platform is Russian-based Factorin, which has processed transactions with a total value of approximately $600 million since it launched in June 2019.
Chief executive Andrei Maklin says Factorin now has more than 500 active users – including 31 banks and two of the top five retailers in Russia.
“So far, most of the companies using the platform are retailers,” he says, “but we are seeing a growing trend of companies from other sectors, particularly telecoms, oil and gas and metallurgy.”