A New Zealand private bank just facilitated shipment-of meat from its country to South Korea by using distributed ledger technology (DLT). It seems due to the claims by the financial institutions the its the first deal where this decentralized distributed technology Blockchain is involved. It’s the first ever “bank-led blockchain trade” in New Zealand export history. However ASB used Distributed Ledger Technology in parallel to its traditional payment systems.
The transaction was settled between the Greenlea premier Meats and a South Korean importer with the participation of local export insurer Vero and documentation processing distributed prodoc. The Blockchain system increases the speed and decreased the time elapsed to an hour whereas it would have taken 3-4 days with a tradition trading software as explained by Greg Beehre, head of Global Transaction banking as ASB.
“[Blockchain] offers traceability and is scalable across the whole supply chain ecosystem giving all partners in the process a competitive advantage,” Beehre commented in the press release.
DLT not only accelerated significantly the export process but also reduced the risk of fraud and Cyber attacks as it removed weak links in the traditional trading system and guaranteed data integrity.
The platform used by ASB was built by Blockchain company VerifyUnion, which launched a supply chain management product in June. CEO AJ Smith noted:
“New Zealand is an export-led economy. It was really important to us to be able to use emerging technologies to help ASB solve a real problem facing its exporting customers. At the documentation layer, the blockchain-enabled supply chain allows partners to access key documents, such as a bill of lading, certificates of origin and other documents required by customs, which streamline these processes.”
ASB, which is owned by the Commonwealth Bank of Australia, plans to use Distributed Ledger Technology system (DLT) for trade via airfreight in the coming weeks.
Blockchain has surely become an attracting technology to various industries and the applications are limitless due to its unprecedented security features and decentralization.