Gemany-based bank Landesbank Baden-Württemberg (LBBW) has joined Marco Polo, a blockkchain-based trade finance network that aims to bring significant efficiencies in financing trade.
LBBW is a parent company of three commercial banks and the Landesbank for some federal states of Germany. Its core activities are the business with corporate customers, in particular small and medium-sized enterprises and the private customer business, as well as savings banks. With total assets of EUR 238 billion ($270B USD) and around 10,000 employees, LBBW is one of the largest banks in Germany.
Launched in 2017, the Marco Polo Network is a bank focused network of platforms offering ERP-embedded working capital finance apps to their corporate clients giving access to multiple different working capital finance solutions directly from within the corporate’s ERP system. The network leverages the TradeIX platform, open APIs as well as R3’s Corda blockchain platform. It allows banks to easily integrate into trade orchestrations, bringing in ERP, procure to pay, logistics, payment, insurance data, real-time into the transactions.
LBBW joins Marco Polo as first member of the German S-Finanzgruppe. By joining the Marco Polo Network, LBBW becomes part of a growing list of members including BNP Paribas, Commerzbank, ING, Standard Chartered Bank, Natwest, Natixis, Bangkok Bank, SMBC, DNB, OP Financial Group and Anglo-Gulf Trade Bank.
LBBW said that becoming part of the Marco Polo Network is the next step in improving banking services for its customers.
“Being a founding member represents an important step for LBBW to offer innovative and customer-centric trade finance solutions,” said Dr. Christian Ricken, Member of the Board at LBBW. “Joining the Marco Polo Network also helps us expanding our trade finance solutions and collaborating with other bank members, allowing us to continue to help finance the growth of Germany’s industry sectors.”
Daniel Cotti, CFO of TradeIX, said that the Marco Polo Network is committed to shaping the future of trade finance with the use of distributed ledger technology and powered by open APIs.
“As one of the leading banks in Germany, LBBW together with the Marco Polo Network is well positioned to twin these two strengths to improve efficiency and drive innovation in trade finance,” said Cotti.
David E. Rutter, CEO of R3, said that easy access to trade finance is critical for industry growth and blockchain provides significant efficiencies over existing systems.
“LBBW’s regional expertise will be invaluable to the Marco Polo network as it continues to expand and develop innovative trade finance solutions on Corda,” Rutter said.
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