Enterprise blockchain giant R3 has announced the completion of a trial of a trade finance network dubbed Marco Polo Network, terming it the biggest financial trial ever.
According to CoinDesk, the piloting involved over 70 firms coming from 25 nations. More than 340 representatives from the participating organizations took part in the trials and were drawn from different sectors such as finance, logistics, telecommunication, information technology, automotive, real estate as well as hospitality.
The piloting phase involved looking at the working capital applications that have been developed by TradeIX and put more emphasis on receivables finance products within the Marco Polo network. TradeIX explained that account receivables financing is a situation where an enterprise outsources account receivables for a discount where it expects instant cash payments, also known as factoring.
The purpose of the new network is to scale up connectivity as well as efficiency while at the same time reducing the onboarding costs. R3 stated that during the trials, over 700 funding requests were finished while training of users required only a day on average.
The Marco Polo network was developed by R3 in collaboration with TradeIX and intends to come up with real-time settlements as well as transparency in different trading agreements. The network has seen notable membership in the recent past comprising of Mastercard, Bank of America as well as automobile maker Daimler. In October, the network saw the inaugural Russia-Germany transactions finished.
Last month, the Bank of New York Mellon joined the network as the 28th bank saying that it was motivated by how R3 has developed the open account financing.
The recent trial involved various banks comprising of SBI Holdings, Citizens Bank, Mexican bank Banorte, ABN AMRO from the Netherlands, Saudi British Bank as well as Bank of East Asia from Hong Kong. other notable participants comprised of German automobile maker BMW, SBI R3 Japan and Sumitomo Corporation from Japan.
A spokesperson from SBI Holdings said that the network will revolutionize the conventional bank-corporate relations innovatively, Cointelegraph reports.