Helaba, one of the popular German banks, have joined three more banks to complete the process of issuing a promissory note, which is a sort of legally binding loan contract, using a unique blockchain platform. The other banks which participated in the trial include DekaBank, dwpbank and DZ Bank.
The financial organizations used finledger to finish the deal. As per Helaba, the use of blockchain platform minimizes the procedures of issuing such a promissory note by over 50%.
The bank also pointed out that the technology avoids the need for lenders to store records or for borrowers to forward valuables, in addition to bringing down risks and costs related with the process.
The banks involved in the trial are now planning to introduce finledger to the entire sector. Peter Tenbohlen, the head of operations at DZ Bank, added:
“As digitization has progressed, our customers’ demand for digital services has increased significantly. Thanks to the bundled expertise of four banks, we are now presenting a new platform through which trading transactions can be processed fully automatically.”
Frankfurt based Helaba signed up with the DLT (Distributed ledger technology) based trade finance network Marco Polo. Earlier in May, three multinational banks signed up with Finastra’s R3 Corda blockchain-based syndicated loans platform, permitting financial firms to share accrual balances, credit contracts and other documents on real-time.
