Nordea Offers Blockchain Trade Finance Platform to SMEs

Nordea Offers Blockchain Trade Finance Platform to SMEs
May 14, 2019

 

The cryptocurrency market continues with the bull run as Bitcoin (BTC) tears past $7,800 levels. In the past week, the cryptocurrency, touted as an asset of value, has gained a whopping 38.1%. More interestingly, Bitcoin (BTC) has gained almost $5,000 since January 2019. Many analysts are projecting a price of over $20,000 by 2020. As it usually happens, Bitcoin’s steep uptrend has started pulling up other altcoins, specifically Ethereum (ETH). Ethereum blockchain, which facilitates deployment of smart contract, has gained 17.4% in a week to trade at $204.29. Other altcoins are also trading with considerable gains. This includes Ripple (XRP-$0.3630, 23.2%), EOS (EOS-$5.88, 19.6%), Stellar (XLM-$0.1072, 10.5%), TRON (TRX-$0.02583, 8.2%), Cardano (ADA-$0.0773, 15.7%), Bitcoin Cash ($391.65, 36.9%), Litecoin (LTC-$91.21, 21.1%) and IOTA (MIOTA-$0.3471, 21.1%).

 

Government level initiatives

The UK is taking action to clarify the status of crypto assets

A legal team, led by the UK government, has called for public views to decide the standing of cryptocurrencies under English private law.

In its announcement, the United Kingdom Jurisdiction Taskforce (UKJT) has mentioned that the current legislative uncertainty around the crypto sector is a prime reason for a shortfall of trust among investors. The Law Tech Delivery Panel (LTDP) has established six task forces, one of them being UKJT. The organization brings in its fold multiple organizations such as the Law Commission of England and Wales, the Judiciary and the Law Commission of England and Wales, in addition to tech and legal experts. As the document points out, the UK Financial Conduct Authority has also played its part in the initiative as a technical consultant.

The task force has pointed out that blockchain-based smart contracts will “only finally take off when market participants and investors have confidence in them.”

The UKJT wrote: “Mainstream investors still need to be convinced that their legal rights can be protected when they trade in crypto assets and enter into smart contracts.”

The UKJT has begun drafting an authoritative official announcement on the standing of cryptocurrencies and smart contracts under English private law to determine the main legal queries related to the sector and to offer a channel for mainstream adoption. After the consultation and all information is studied, the UJKT plans to publish an official statement by late summer. Following the announcement, authorities will assess whether any legislative amendment is needed.

 

The US launches a task force to examine fintech and AI

The US House of Representatives Financial Services Committee adopted a resolution to create the Financial Technology Task Force. The latest task group aims to “examine the present legal structure for fintech, how fintech is used in banking and how customers communicate with fintech.”

Congressman Stephen Lynch (D), the recently designated president of the Financial Technology Task Force, mentioned in a press statement on the committee’s urgency to re-assess how to efficiently safeguard customers using latest fintech.

Stephen Lynch (D) said: “The lives of consumers are changing with user-friendly financial service apps, but these emerging technologies come with vulnerabilities and the need to reevaluate our consumer protection standards.”

Some noted crypto-friendly representatives such as Warren Davidson (R) and Tom Emmer (R) will be joining the newly founded fintech task force.

 

Private sector initiatives

Nordea granting access to we.trade to small and mid-sized business owners

Norwegian private banking firm Nordea is giving access to we.trade – a blockchain powered trading platform – to its small and middle-sized business clients (SMEs). The platform will supposedly resolve confidence shortfall in cross-border trades conducted by SMEs.

Patrik Zekkar, Global Head of Trade Finance and Working Capital Management at Nordea, elaborated as follows: “Almost 60 percent of the SME’s said that they have to make advance payments, so there is obviously a sense of insecurity surrounding cross-border trade. This is unfortunate, not only from a liquidity standpoint, it may also lead to companies refraining from trading and not growing.”

Using the we.trade platform, users can choose specific actions within a smart contract that will spark a payment to another party. We.trade is a joint venture of 12 different banks including Deutsche Bank, KBC, HSBC, Natixis, Société Générale, Santander, Rabobank, and UniCredit, and is based on the IBM Blockchain platform. The platform started its live operations in June 2018. Nordea signed up for the venture in 2017 and provided access to the platform for select clients in April 2019. Nordea, a reputed private bank in the Nordic region, had a market cap of €32.40 billion and net income of €3.70 billion in 2016.

 

Swiss Post joins hands with blockchain company Modum in creating ThermoCare

Swiss Post has collaborated with blockchain company Modum to create a heat surveillance system for product deliveries.  Die Post states that Swiss Post collaborated with Modum, a blockchain and IoT software company, as a technology associate to introduce a smart facility. Dubbed ThermoCare, the service is for tracking package temperature, allowing delicate products to be monitored, evaluated and registered throughout their transit. The solution is reportedly targeted at streamlining the movement of pharmaceutical goods and providing a guarantee to the food sector.

ThermoCare capitalizes Modum’s thermo-monitoring technology to guarantee that specially packed goods — in ThermoCare packages — are held within a defined temperature range during transit. Besides temperature regulation, the option also provides temperature surveillance via a Modum detector, which logs and documents the temperature of the products in real time.

An employee can access temperature info at any given point in time by scanning the parcel and eliminating the need to unpack products for quality checks. Thus, any temperature variations can be monitored instantly, enabling stakeholders to decide which place or organization is liable for any change in quality management.

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.

Sammy

Sammy

Sammy is our forex expert, with over 20 years experience in the financial sector, she will be keeping you up to date with the ups and downs of currencies around the world


Related Articles

The Leading Cryptocurrency Stories for 3rd Jan 2018

The equity and debt markets remained lacklustre last week due to Christmas and New Year celebrations. However, it was not

The Leading Cryptocurrency Stories for 20th June 2018

The cryptocurrency market is once again making an attempt to turn bullish and the outcome, as usual, is dependent on

The Leading Cryptocurrency Stories for 25th June 2018

After a few days of range bound movement, the cryptocurrency market started to bleed again, with almost all major altcoins