It is widely recognised that distributed ledger technology has the potential to benefit trade finance in every sector. And this is particularly true in the commodities trading market. The use of DLTs could, for example, ensure the provenance and traceability of goods as they flow through trade corridors, eliminate slow and error-prone paperwork, and streamline the regulatory processes required for transferring goods across borders. It could also help manage and mitigate the counterparty risk for payment and settlement. By using DLTs to provide a single source of truth, on a common ledger accessible by all participants and regulators, new efficiencies can be delivered and barriers to trade reduced, while maintaining regulatory compliance in a multi-jurisdiction world.
Realising this clear potential, however, has proved an elusive goal. Why? Because it requires that all market participants and stakeholders involved in a transaction are using the same DLT. In reality, however, each group of participants forms a patchwork of single-DLT instances which cannot integrate with each other. To resolve this issue, a solution to DLT interoperability is required – and such a solution has – until recently – been unavailable. Now, though, thanks to Quant technology, this situation has changed.
Quant Overledger OS and Overledger Network solutions provide a fast and simple route to the interoperation of internal and external DLTs and legacy networks. Using Overledger, stakeholders can connect their own data sources to any interlinked ledger to facilitate unprecedented levels of connectivity while preserving the data ownership and privacy levels expected for financial transactions. Furthermore, each participant can provide input into the transaction, share governance controls and have a shared historical view of the provenance of goods. In short, Quant’s technology delivers faster, more transparent, more traceable and secure trade finance systems than ever before.