Countries in Latin America will be able to experience the benefits of blockchain for themselves thanks to a collaboration between Itaú Unibanco and Standard Chartered.
Blockchain’s allure continues to grow. It is being used in a range of various industries thanks to its intrinsic characteristics like transparency and immutability. One of the sectors that blockchain’s popularity seems to soar in is finance.
There are many major players in this industry that are embracing the benefits of blockchain in a bid to cut down on costs and increase process efficiencies. From JPMorgan Chase to Standard Chartered, the blockchain revolution definitely appears to have a strong following.
Partners in Blockchain
In fact, according to Reuters, Standard Chartered and Banks Itaú Unibanco Holding SA have entered into a collaboration to bring the technology to Latin America. The team hopes to develop a blockchain-based platform to facilitate small syndicated loans, which are also known as club loans.
In addition to simplifying the lending process, the partnership believes that the technology can alleviate the risk of fraud as well as reduce processing costs. The team, along with Wells Fargo & Co actually tested their platform by raising $100 million in a club loan.
The platform, known as Corda, was developed by U.S.-based startup, R3. The company creates blockchain-based solutions for businesses in the finance sector.
Brazil-based Itaú’s Treasury Managing Director, Ricardo Nuno, advised that while the blockchain was used to facilitate all of the loan terms, money was not actually transferred in the test. However, he assured that the platform would be able to do this in future.
He also stated that the platform did, in fact, assist with decreasing costs in the test as well as reduce the number of back-and-forth messages being sent among stakeholders, which usually equates to about 2,000 emails.
Expanding Access to the Technology
The test appears to have spurred Standard Chartered on with regards to increasing blockchain’s digital footprint. Germana Cruz, who is the bank’s Head of Financial Institutions for Latin America, stated that the financial institution hopes to test out the technology on new deals in other countries in the area.
Live Bitcoin News has previously reported that Standard Chartered’s Group Chief Executive, William Winters, has made his stance clear when it comes to the future of money. He believes that it will definitely be digital, which will not only increase efficiency but also open the door to financial inclusion.
Along with other banks around the world, Standard Chartered has also created a blockchain-based global trading platform as a way to streamline outdated processes.
Do you think that this project will find success in Latin America? Let us know in the comments below!
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