Blockchain Revolution in Trade Finance

Barclays and innovative start-up company Wave have become the first organisations to execute a global trade transaction using blockchain technology.

The letter of credit transaction between Ornua (formerly the Irish Dairy Board) and Seychelles Trading Company is the first to have trade documentation handled on the new Wave platform, with funds sent via Swift. It is hoped this landmark transaction could herald a new era of simpler, safer and faster trade finance.

Wave was one of eleven companies to go through the Barclays Accelerator programme in New York in summer 2015, during which time it received expert mentoring from the bank. Since then it has been working with Barclays’ Trade & Blockchain team to explore the various use cases of its innovative technology. Barclays is also seeking to involve other banks in supporting adoption of Wave’s system, with the hope that this can develop into an industry wide improvement in how trade documentation is managed.

Barclays’ client Ornua used the Wave platform for a shipment to the Seychelles.