Banks in Latin America Launch a Blockchain-based Platform for Loans

Two banks in Latin America have collaborated to develop a Blockchain-based platform that will aid in issuing loans. The banks are Itaú Unibanco Holding SA and Standard Chartered. They revealed in a statement that they aim to eliminate fraud and cut the legal cost that is usually involved.

Blockchain-based Platform to be Used to a Handle Client Loans

R3, a New York-based startup is the developer of the Blockchain platform. This platform is called Corda, and the new system will be used to handle clients’ loans. These loans are known as club-loans because the lenders are usually a small group of people, and the amount to be lent is considerably small.
Currently, it can take weeks before transactions can be completed because about 2,000 emails have to be sent between parties who will be involved. Asides being a complex process, there are also legal costs to consider. The level of risks associated can be said to be high since it may be difficult to detect fraud in financial transactions easily.

New Platform Promises Faster and More Efficient Transactions

Therefore, Blockchain technology which is reputably known to be faster, more efficient and reliable has been relied upon. Its application in this area will bring about efficiency in the processes and transparency between parties. Ricardo Nuno, Itaú’s treasury managing director, has also revealed that it will help to reduce legal cost.
To ensure the smooth operation of Corda, the banks have tested it by issuing loans. First of all, Itaú Unibanco and Standard Chartered raised $100 million and then negotiated the terms of the loan. Although the money was not transferred, it was said that in future, the money could be sent to the receiving party.

Financial Institutions are Adopting Blockchain Technology

More banks are adopting Blockchain technology either in combating fraud or facilitating their processes. An example is SWIFT India, a financial services provider who has collaborated with the Fintech firm, MonetaGO. The former will use MonetaGO’s Blockchain platform for secure messaging. In this case, banks in India will be able to share the same DLT network to gain access to its stored information.
Thailand’s Revenue Department, on the other hand, has decided to use the Distributed Ledger Technology to combat VAT payment fraud. The department has decided that VAT invoices will now be stored on Blockchain to make them traceable. As a result, it will help to resolve issues relating to tax refund claims.

Related posts
BitcoinBTC Trading ViewNewsNews 1Trading View

What key milestones will Bitcoin face after hitting $80,000?

Senior Commodity Strategist at Bloomberg, Mike McGlone has been painting a bullish narrative for Bitcoin lately. In the past 24 hours alone, the strategist’s data revealed that investors were now seThe post What key milestones will Bitcoin face after hitting…
BitcoinBTC Trading ViewNewsNews 1SocialTrading View

100k Bitcoin options set to expire: here's what to expect from the market

Bitcoin’s price is currently $54000 based on data from; as Bitcoin rallies towards its previous ATH of $58330, the price recovered over 8% in less than 24 hours and this is a bullishThe post 100k Bitcoin options set to…
Binance Smart ChainEthereumEthereum NewsETHUSDethusdtNewsTron NewsTRXUSD

On-chain data reveals Ethereum still far ahead of rival networks

Ethereum has been rumored to be lagging behind in user activities. The reason being that new tots on the block have snatched a decent number of the network’s users in the past months. While the newbies have been welcoming new…