Financial institutions around the world have not only realized the potential of blockchain but are making every effort to integrate it into their system to infuse it with the reliability, security, and speed that the tech brings. Helsinki, Finland-based Nordea is no exception. It launched its first blockchain platform, we.trade, built in collaboration with twelve other banks on the IBM blockchain just a month ago. Now, the bank has decided to extend we.trade’s operations to include small and middle-sized businesses (SMEs) into the fold.
The Underlying Idea
The bank has come to this decision after realizing the inherent trust issues in cross-border trade experienced by SMEs which often hampers their growth. It is in this area that the bank wants to make a difference. Explaining their move further, Head of Business Banking at Nordea, Magnus Montan, stated:
“We.trade is not only about providing trade finance, it is something much bigger than that. It is about enabling trade and with we.trade we are creating an ecosystem for the global trade, where trust is an integral part.”
Nordea, through we.trade, plans to offer SMEs a platform which will enable them to conduct their business under the protection of smart contracts, specific regulations and the freedom to decide when the payments will be triggered. Moreover, the platform also offers a bonus benefit to the SMEs where they can produce contracts in multiple languages.
The bank is also actively involved with the entire process of the transaction between clients offering insights and security options right from the ordering stage until the payment is made.
Nordea’s Unfavorable Take on Cryptocurrencies
Much like other financial entities and even experts, Nordea is not as favoring to cryptocurrencies as it is to blockchain. In fact, Nordea employees are not allowed to possess Bitcoin, and the bank does not entertain crypto exchanges as well, having closed the account of Bitmynt AS, a Norway-based cryptocurrency exchange, just last summer.