Swift, BNY Mellon, and Deutsche Bank are collaborating on a project to improve commercial efficiency by digitizing freight invoices using blockchain technology. The initiative aims to reduce fraud and costs associated with paper-based invoices. As part of this effort, BNY Mellon and Deutsche Bank recently participated in a trial led by Swift, focusing on the interoperability of electronic freight bills (eBLs).
eBLs are crucial documents in international trade as they certify the ownership of goods during their movement. Currently, most of these invoices are issued on paper, which is inefficient and susceptible to fraud. Transitioning to a digital format for eBLs could lead to significant savings and promote global trade growth.
One of the challenges in this process is the lack of interoperability between existing eBL solutions. This poses difficulties for banks and other supply chain participants who would need multiple integrations to operate efficiently. To address this, Swift proposes a solution that would allow banks to use their existing connections to Swift and a single API for exchanging eBLs among various supply chain players.
Ripple (XRP) could play a valuable role in this eBL interoperability system for several reasons. Firstly, Ripple is known for its ability to facilitate fast and low-cost transactions, which is crucial in the international trade environment. Secondly, Ripple has proven effective in connecting different financial systems, addressing the interoperability challenge faced by the Swift project. Additionally, Ripple’s blockchain technology offers enhanced security and transparency, which is essential in preventing fraud and ensuring the authenticity of freight invoices.
Furthermore, Ripple’s strong presence in the banking sector could facilitate a smoother integration with existing banking systems, benefiting financial institutions like BNY Mellon and Deutsche Bank. Lastly, Ripple can significantly reduce transaction costs and times associated with cross-border transactions, streamlining the eBL issuance and transfer process for the global supply chain.
While Swift’s solution is still under development, the organization is actively seeking industry collaboration for its commercialization. Swift is also exploring interoperability solutions for digital currencies issued by central banks and tangible asset tokenization platforms.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | very positive |
| Relevance Score | 1 |
| People | Joon Kim |
| Companies | CargoX, Swift, Deutsche Bank, WaveBL, TradeGo, edoxOnline, BNY Mellon |
| Currencies | XRP |
| Securities | None |
