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Rabobank slashes commodity trade finance timeline with blockchain

Rabobank slashes commodity trade finance timeline with blockchain

Cargill and Agrocorp, in partnership with Rabobank and other logistics partners, have completed a cross-continent commodity trade transaction of wheat from North America to Southeast Asia on a blockchain platform provided by Singapore-based dltledgers.

The shipment, valued at $12 million and settled on 1 April 2020 from North America to Indonesia, occurred with six trading partners participating on a common blockchain platform.

Partners included Cargill, Rabobank North America, Rabobank Singapore, ship owner Amarante, shipping agent Transmarine, and agri-commodity trader Agrocorp International. The dltledgers blockchain solution is built on the open-source Hyperledger Fabric platform.

The trade took a total of just five days to settle, whereas traditional trading processes can take up to a month.

Rabobank says that the use of consensus-driven smart contracts in the deal reduced the hours spent on processing documents by more than half.

Jennifer Davidson, trade execution lead, Cargill. "We see this transaction as the latest example of how working together and using technology to solve challenges can improve trade, as well as traceability, food safety, nutrition and more."

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