Microsoft and Bank of America have announced their merger to “fuel transformation of trade finance transacting” with the help of the technology behind the blockchain.
“In an announcement at the annual SWIFT-organized Sibos conference, Microsoft and Bank of America Merrill Lynch underlined their collaborative aim to usher in blockchain technology to transform the trade finance sector,” one report said.
This is only one of many partnerships between the financial and technology sectors. More and more companies are teaming up to explore the possibility of somehow integrating the blockchain technology into everyday financial solutions.
A press release on the partnership stated:
“We will work together to build and develop distributed ledger solutions, and create frameworks while establishing best practices for businesses, clients and banks that subscribe to blockchain solutions. By working with Bank of America Merrill Lynch on cloud-based blockchain technology, we aim to increase efficiency and reduce risk in our own treasury operations.”
Financial Institutions have been hesitant in the past about using blockchain in their services. Microsoft, however, is no stranger to blockchain. They offer a blockchain-as-a-service, or BaaS, over their Azure cloud space. Microsoft treasury experts are sitting in as advisers, and testing clients. Microsoft notes that this will be the first ever blockchain transaction between corporate treasury and a major financial institution. It’s all going to happen over the Azure platform.
Microsoft first launched Azure’s BaaS feature in late 2015. Since then, it has engaged in multiple ventures using blockchain solutions for use in various kinds of industry. In spite of the constant questions of its Azure license agreement, Microsoft has continued to add blockchain- related projects to its already vast lineup of tech ventures.
Microsoft also stated that over 80 percent of the world’s banks are users of Azure, and over 75 percent of systemically important financial institutions are using Azure, too.
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