The advancement in blockchain technology is reflected in the recent large-scale transactions and partnerships across the globe. Recently, Mastercard has joined hands with Marco Polo, a trade consortium working with large numbers of major industry players to enhance global trade transactions using the blockchain technology.
News of the partnership was announced on September 4, 2019, as a business-to-business global trade unit of Mastercard is set to provide an access point to Marco Polo’s finance platform. The Marco Polo platform is thought to operate within a $1.5 trillion financial market according to estimated by the World Trade Organisation.
The platform is among the growing network of financial and trading platforms that rely on blockchain technology to offer transaction speed and transparency to its members. The company was started by startups R3 and TradeIX with the vision to offer greater visibility for developing a better relationship between the participants. Using the platform, participants can also get real-time connectivity and gain capital that has lower barriers to access.
Since its launch in 2017, it is estimated that Marco Polo’s working capital finance platform has attracted more than 25 active members who are taking advantage of its blockchain technology. Among these members are certain well-known names such as BNP, ING, and ComemerzBank, etc.
The integration of Mastercard to Marco Polo’s platform is considered a milestone in the achievements of the startups. According to Daniel Cotti, the managing director of the startup TradeIX, members of Marco Polo consortium can easily take advantage of many opportunities offered by the reach and scale of the Mastercard company. The services offered by Mastercard will certainly complement the offering of members on the Marco Polo network.
It should be noted that Mastercard Track, the B2B trading unit, offers vetting, onboarding, and identifying services to more than 210 registered entities worldwide. Despite its size, Mastercard Track has only started to experiment with blockchain technology, which is yet another reason why financial pundits are closely watching this deal
The partnership between Marco Polo and the MasterTrack Trading Unit can offer insights into the future of blockchain as similar partnerships develop in various sectors. Accordingly, the Marco Polo project is still in its pilot phase as members of the platform continue to evaluate the efficiency and benefits of initiating real-time payments on the platform. Just last month, one of the members successfully triggered payment to a major supplier. While the number of transactions is not close to traditional financial platforms, it is the speed, transparency, safety, and results that members are curious about.
Dil Bole Oberoi
