Institutional

Germany’s Commerzbank exploring blockchain-based payments solution

August 8, 2019, 6:31AM EDT

Commerzbank, the second-largest bank in Germany, is exploring a blockchain-based payments solution that won’t require human intervention, according to an announcement Thursday. 

The bank has already completed testing the first use case of the solution, where it issued euros on a blockchain and provided automobile giant Daimler Trucks, the maker of Mercedes-Benz cars, with “cash on ledger” to process the payment.

The use case demonstrated that both charging and subsequent payments can be processed fully automatically. "Independent communication and interaction between machines (called machine-to-machine or M2M) is happening, this also enables the settlement of mutual payments," the bank said.

Other use cases can be explored in chemicals, manufacturing and real estate sectors, it added. 

This is not the first time Commerzbank is exploring blockchain technology. Earlier this year, the bank executed commercial transactions via trade finance blockchain Marco Polo, as well as processed a commercial paper transaction “in minutes rather than days,” thanks to the technology.

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