In a joint project, Commerzbank, Evonik and BASF successfully tested a shared blockchain platform to efficiently handle bilateral supply chain processes between companies in a live environment.
„During the test, payments between Evonik and BASF were checked, paid and booked in a fully automated and digital manner by means of a programmed payment process,” according to the press release.
“Programmable money has enormous potential to further digitalise supply chains. Commerzbank has once again taken a significant step forward in the use of blockchain-based payment solutions building on our existing work in this exciting area of future financing”, said Carsten Bittner, Divisional Board Member responsible for Technology Foundations at Commerzbank.
Evonik’s mutual supplier relationship with BASF forms the basis for the project; the companies have maintained an active business relationship for many years and they regularly settle trade receivables.
In the pilot project, the two companies transmitted business process-relevant data to Commerzbank’s blockchain platform with the help of the data service provider Elemica. The platform then generated a complete and tamper-proof depiction of the relevant business processes as well as the data and then blockchain was used to automate payments.
For this purpose, electronic money (e-money) was made available to the partners for trading on the distributed ledger technology platform. Payments were processed once the transaction was automatically validated by digital contracts (smart contracts) and through programmable money, i.e. cash on ledger.
The project participants are pleased with the successful completion of the pilot. Heinz-Günter Lux, Senior Digital Strategist at Evonik Digital GmbH commented: “The payment process via blockchain and by means of programmable money along our existing process chains is definitely more transparent, quicker and more reliable. It is an important building block towards the development of fully autonomous supply chains.”
Commerzbank has been integrating the blockchain technology for years and developing specific applications to offer clients suitable blockchain-based products and services.
„The experience gained from past pilots and collaborations, for example, the processing of machine-to-machine payments with Daimler Trucks and the successful money market securities transaction via blockchain with Continental and Siemens, allows Commerzbank to create value for our clients and to make the technology profitable,” the bank said.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
