Daimler Executes First Transaction on Blockchain Trade Finance Platform

Daimler blockchain trade finance Marco Polo platform Durr

Automotive manufacturing giant Daimler has executed its first transaction on the Marco Polo trade finance platform, as the firm moves toward greater adoption of blockchain.

The initial transaction saw Daimler prepare a payment for parts supplier Dürr, with support from German bank Landesbank Baden-Württemberg (LBBW).

The transaction was formed around an order and delivery agreement, with a conditional commitment from Daimler’s banking partner to execute payment.

Conducted entirely on the Marco Polo blockchain platform, fulfillment data was automatically reconciled, triggering the irrevocable release of payment as intended.

The transaction could have implications for other firms looking at blockchain technology for improving efficiency across the supply chain, with the initial results demonstrating the capacity of the Marco Polo network to deliver faster and simpler trade.

Built on R3’s Corda infrastructure, the Marco Polo network hopes to replace the currently cumbersome, often paper-based process of arranging payment and delivery of goods internationally.

Conducted in “minutes, not days,” Daimler and Dürr are reported to be actively considering greater reliance on the technology for more efficient supply.

Susanne Schlegel, chief financial officer of Dürr subsidiary Schenck, said the platform would “reduce complexities” in fulfilling orders.

“We focus on efficiency increases not only with regard to our machines and systems, but also to our business processes. The successful pilot project between Daimler and LBBW demonstrates the intrinsic efficiency potential of digital trade finance processes. Innovative platforms and technologies such as Marco Polo and Corda allow us to reduce complexities in order fulfillment – to the benefit of all participants.”

The move sees the Mercedes-Benz owner take a step closer to fully embracing blockchain tech within its business, at a time of increasing interest in blockchain for trade finance, among other applications.

Marco Polo’s automatically triggered payments were announced in August, allowing blockchain data to initiate irreversible payment obligations.

The development has been hailed as an important step for the platform in appealing to commercial users, helping improve efficiency as well as transparency in the trade buying process.

Marco Polo has recently confirmed the addition of several new high-profile members to its project, including Bank of America and Mastercard.