Blockchain-based Proof Of Concept Developed by Brazil Bank and Standard Chartered For Loans

As per ZDNet’s report on December 11, 2018, Itaú Unibanco Holding bank, a bank of Brazil has recently collaborated with Standard Chartered to successfully complete the development and testing of Latin America’s first blockchain-based proof of concept for loans. This and other such developments  have indicated that the on going bear market that has persisted in the crypto market, since the month of November 2018 has not been able to deter the blockchain industry at large, with multiple companies across the globe vying to be the first to implement the revolutionary technology and to implement it into to their business.

Brazil’s largest private bank, Itaú Unibanco Holding, is one of such companies who has partnered with U.K.-based Standard Chartered bank to create a blockchain-based platform that will be used to issue small loans.

The details about the bank’s joint venture was announced on December 4, 2018. They now join Wells Fargo to issue a club loan of $100 million in order to test the platform. The treasury managing director, to of the bank, Ricardo Nuno, in an interview told Reuters that the banks we’re already negotiating the loan terms through the blockchain-based platform, but did not yet transfer the money. But now, with the collaboration underway, and the completion of development and testing of the platform, they could look forward to a future which could see the first loans on a issued on a blockchain platform as soon as 2019.

According to ZDNet, proof of concept was being carried out using R3’s Corda Connect open source platform and was aimed at simplifying the process underpinning syndicated loans.  According to reports Finextra, Commerzbank, a German banking and financial services company, Natixis, a French corporate investment bank, and Netherland’s Rabobank all were involved in the transaction.