Automaker Daimler AG has conducted its first pilot blockchain transaction with engineering firm and parts builder Dürr AG on R3’s Marco Polo trade network, German bank Landesbank Baden-Württemberg (LBBW) announced in a press release on 25 September.
According to the announcement, Daimler, the parent company of Mercedes-Benz, and Dürr’s subsidiary Schenck used Marco Polo to process the data transfer required to exchange payments. The transaction between the two firms included an order and delivery agreement, with the payment being secured by a conditional payment commitment from Daimler’s bank.
When the ordered equipment was delivered, the fulfillment information was entered in Marco Polo, which triggered an irrevocable payment obligation. LBBW, one of Marco Polo founding members, provided the financing and payment commitment.
The press release also stated that, whereas a traditional paper-based payment for international trade transactions takes days to complete, with Marco Polo it took only minutes. It seems that the successful transaction convinced both Dürr and Daimler the process can be “streamlined and work faster and simpler”, with Jürgen Vogt, the Director of Treasury Controlling, Analytics & Standards of Daimler AG, saying:
“The optimization potential inherent in trade finance transactions is high. This pilot project between Dürr and LBBW is an important step for us to evaluate future possibilities of blockchain technology in this field, to digitize the trade finance workflow and make it more efficient and transparent.”
This is not the first time that Daimler was involved in a blockchain project. Earlier this year, financial services firm Commerzbank tokenized euros on a blockchain and tested the exchange and settlement of payments between an electronic charging point and a Daimler truck system without any human intervention.