The We.Trade Consortium has now added another partner, which is a strategic move to extend its geographical coverage into a wider Nordic market - Nordea.
The We.Trade Consortium has now added another partner, which is a strategic move to extend its geographical coverage into a wider Nordic market. That means Nordea enters into a joint venture that consists of HSBC, Unicredit, Deutsche Bank, Rabobank, KBC, Societe Generale and Natixis. This finance blockchain consortium was formed early this year with a purpose of solving the financing gaps that are affecting both domestic and cross-border trade in Europe. Nordea is the first bank from Nordic region to provide a customer-facing trade solution, which is referred to as Blockchain.
IBM was awarded a contract to provide a digital platform also known as cloud-based system in a very competitive bidding process earlier this year. The system is supposed to address various challenges such as managing, tracking and securing both domestic and international transactions between the SMEs. This digital platform is fully automated and can be accessed 24/7, through making orders to payments in a quick process compared to traditional one of exchanging documents.
Ville Sointu, top manager at Nordea, said that we.trade standout with its focused and realistic execution plan that involves smart blockchain technology initiatives. Nordea is looking forward to providing a Nordic perspective to this consortium. From the very beginning, Nordea was always willing to be part of the consortium. However, it took a while to settle the deal. Obviously, this was also a good opportunity for we.trade to cover Nordic countries.
The joint venture was incorporated in Ireland, and recently it also brought in Banco Santander. Currently, the consortium is planning for a commercial roll-out early 2018. The future plan for this consortium is to include more banks and trading partners. Once a bank becomes a member, it will have a node on the platform, which will allow them to give their customers access to the we.trade system. It is also expected that the customers of the founding banks of the consortium will use the platform very soon.