Nordea reports first trades on blockchain-based platform

Maria Nikolova

Developed by Nordea in collaboration with eight other banks, the vision for we.trade is to allow companies to trade in a fast, easy and transparent way.

Blockchain-based technologies are gaining support among certain financial companies. Earlier today, Nordea announced that blockchain platform we.trade has performed its first trades.

The bank said the platform was launched today with pilot customers making live trades. Developed by Nordea in a European-wide collaboration with eight other banks, the aim of we.trade is to create a common platform which enables companies, from SMEs to large corporates, to trade in a fast, easy and transparent way. The goal is to fully automate the trading process and seamlessly connect the entire trade ecosystem.

The launch of the platform has seen the completion of the first ever bank guaranteed trade transaction on a multi-party blockchain network in Europe.

Patrik Zekkar, Head of Trade Finance & Working Capital Management at Nordea, says. “The we.trade platform creates trust in the trading system and reduces the catch-22 that occurs at the beginning of a trade. Do I ship products before I receive payment or do I as buyer pay before I receive the shipment? That was the kind of basic need we wanted to cover before building from there. Using blockchain technology of this kind and scaling it up to this level is a real first. This project has been running for 1.5 years and to reach the stage of running live DLT (Distributed Ledger Technology) blockchain transactions across Europe is quite important and a big breakthrough.”

Traditionally SMEs have faced a three-way trade off between bearing the risk, purchasing complex and expensive coverage or even turning down a business opportunity. The use of blockchain technology enables the automatic generation of payment instructions to be submitted to the debtor’s bank as soon as contractual conditions are met. This reduces the risk of payment delays which can be costly for both buyers and sellers.

The we.trade platform also offers SMEs in particular, access to easy financing, the chance to avoid prepayments and a portfolio of different solutions that can help them wherever they are in the business cycle.

Magnus Montan, Head of Business Banking at Nordea, notes:

“This platform is a controlled and transparent environment that removes the unknowns from the trading process and creates trust. However, it’s not only the technology which protects customers and gives them visibility. A rule book and a legal structure have also been put in place stipulating the conditions for submitting transactions in we.trade. It’s a legal framework to find comfort in”.

In addition, Nordea stresses that the collaboration with the other banks has made it possible to create a large Europe-wide trading ecosystem with a critical mass of customers to ensure a relevant and sustainable platform. This shared economy facilitated by a community of banks has been undertaken for the benefits of customers, especially SMEs.

“This is massive disruptive change for the industry. This is just the beginning and I don’t think we can really foresee where it will take us. It’s not just about digitalising existing trade processes or part of the existing supply chain, it’s about totally changing the set-up of how we conduct our trade. It’s an order-to-payment set up – order all the way to cash,” concludes Patrik Zekkar.

we.trade was established by Deutsche Bank, HSBC, KBC, Natixis, Nordea, Rabobank, Santander, Societe Generale and UniCredit in order to address the expectations of their customers to make cross-border trade more straightforward. Currently, the platform is available in 11 European countries: Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden and the UK.

Read this next

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

““The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

Web3

COTI Teams Up with Civic for Enhanced Digital Identity Control

СOTI and Civic are teaming up to enhance digital identity security in Web3, aiming to provide users with more control over their digital selves through innovative technology.

Digital Assets

BlockDAG Takes on Chainlink (LINK) Crypto, and RON With DeFi Card and 5000x Profit Potential

Explore BlockDAG’s innovative DeFi card, which transforms cryptocurrency into spendable cash, alongside Chainlink (LINK) crypto and Ronin’s advancements.

Digital Assets

Court finally decides on Sam Bankman-Fried sentence, experts predict 20 years

Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, is set to face sentencing on Thursday in a pivotal moment that could see the entrepreneur beginning a lengthy period in federal prison.

<