BNP Paribas applies blockchain technology to corporate payments
BNP Paribas has completed its first live cross-border B2B payments between corporate clients using blockchain technology.
The transactions, conducted on behalf of packaging outfit Amcor and trading cards group Panini, were cleared in various currencies between BNP Paribas bank accounts located in Germany, the Netherlands and the United Kingdom.
The French bank announced in September that it had entered ‘co-development mode’ with clients to pilot a number of blockchain applications for transaction banking, after embarking on a collaborative process during its ‘Blockchain Bizhackathon’ earlier this year.
For the ‘cash-without borders’ project, the payments were fully processed and cleared in a few minutes, says the bank, highlighting the potential of the technology to eliminate delays, unexpected fees and processing errors, and pave the way for real time cash management.
Jacques Levet, head of transaction banking Emea at BNP Paribas CIB, comments: “This proof-of-concept demonstrates that blockchain technology offers real opportunities to considerably improve our offer for corporate treasury managers. On the payments front, this confirms our strong commitment to follow closely and further accelerate our participation in a number of market initiatives aiming at improving the corporate payments experience using blockchain technology.”