Bank of America has been working on a prototype distributed ledger system to modernize trade finance. This project is another example of the bank’s effort to gain a foothold in the rapidly ballooning financial innovation movement. Bank of America also filed paperwork for 20 blocking patents
at the start of 2016.According to an FT article, Jason Tiede, Head of Innovation for Global Transaction Services at the Bank of America, said that the project is being developed in partnership with another “yet unnamed” financial institution.
Tiede says that blockchain tech may solve the slow and time consuming process of trade finance:
“We are working on a pilot in the trade finance space. As trade finance often relies on manual, paper-based processes, it serves as an interesting use case of the value of digitising an asset on a distributed ledger.”
He mentioned that the pilot program may be ready for testing by late spring. BofA is also part of the R3 blockchain consortium, which is backed by 40 of the world’s largest financial institutions.
Tiede also said that this particular pilot program is being developed in private, and that this experiment is separate from other projects BofA is currently developing within the R3 group. Tiede believes that blockchain tech has many applications and that its benefits are “still being conceived”.
Image credit: 1
If you liked this article follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.
Forbes Disclosure Catalyzes BlockDAG Presale: Is This Crypto Innovation the Future or Just a Tech…
BEFE Coin makes an ethereal entrance onto the crypto scene, surpassing mammoths in the scene,…
The crypto market is loaded up with various kinds of coins. Some wind up satisfying…
BlockDAG's X30 Home Mining Rig Dominates with $2.3M Miner Sales, Outruns Polygon (MATIC) Price, and…
Bitcoin Runes, the latest addition to the cryptocurrency landscape, has made significant strides since its…
Pendle has witnessed a substantial downturn, with a 16% decrease today and a 34% drop…