UniCredit has completed its first Italian transaction via the blockchain-based trading platform we.trade.
The bank facilitated a tinplate trade between metal packaging producer Gruppo ASA and its supplier, Steelforce, which was supported by KBC Bank in Belgium.
Through the creation of a smart contract on the we.trade platform, payment will be automatically triggered according to the terms agreed by the counterparties once the buyer has confirmed the delivery of the goods.
This, says the bank, makes the transaction considerably faster and more transparent, offering a way to help firms to carry out international trade in a more efficient and cost-effective way.
We.trade, which was set up in 2017 by UniCredit alongside another six European banks, allows companies, particularly SMEs, to identify trusted counterparties for establishing new commercial relations - providing full visibility on transaction and shipment status, digitalizing the process from order creation to payment execution.
Within the platform, companies can also access financial services provided by their bank, such as Bank Payment Undertaking, where the buyer’s bank provides the seller with an irrevocable undertaking to pay the invoice at maturity date, and BPU financing.
Luca Corsini, head, global transaction banking, UniCredit, says: "We believe that we.trade can contribute to redefine business relationships among SMEs, removing obstacles that typically make international transactions costly and complex whilst delivering concrete benefits for our clients."