Nordic private banking institution, Nordea is extending the blockchain based trading platform we.trade to its small and middle sized business customers (SMEs).
Efforts have been made by the platform to address trust deficits existing in the present cross-border trades made by SMEs. Patrik Zekkar, Global Head of Trade Finance and Working Capital Management at Nordea said, “Almost 60 percent of the SMEs said that they have to make advance payments so there is obviously a sense of insecurity surrounding cross-border trade. This is unfortunate, not only from a liquidity standpoint, it may also lead to companies refraining from trading and not growing.”
We.trade platform lets the users select certain events within a smart contract that will trigger a payment to another party. Twelve different banks like Deutsche Bank, HSBC, KBC, etc. are put together as a project and is based on IBM Blockchain platform. The first live project was done by we.trade in June 2018. Nordea tagged along in 2017 and soft launched it for more customers last month.
Nordea is a leading private bank in the Nordic region. Over 32.4 billion worth total equity was possessed by the company in 2016, with a net income of 3.7 billion euro.
Nordea does not entertain cryptocurrency as much as it does blockchain. Employees who owned Bitcoins (BTC) deemed to be banned in January 2018. Danish finance and workers’ rights figures threatened legal action after being announced of the ban.
Norwegian cryptocurrency exchange Bitmynt AS got its bank account shuttered in December 2017. Nordea was sued by the founder of Bitmynt who lost the case in May 2018.