UniCredit completes first transaction in Italy via we.trade blockchain platform

The first of its kind in the Italian market, UniCredit facilitated a tinplate trade between metal packaging producer Gruppo ASA and its supplier, Steelforce, which was supported by KBC Bank in Belgium.

Through the creation of a smart contract on the we.trade platform, payment will be automatically triggered according to the terms agreed by the counterparties once the buyer has confirmed the delivery of the goods, making the transaction more transparent.

we.trade allows companies, particularly those in the SME segment, to identify trusted counterparties for establishing new commercial relations – providing full visibility on transaction and shipment status, digitalizing the whole process from order creation to payment execution. Within the platform, companies can also access financial services provided by their bank, such as Bank Payment Undertaking (BPU), where the buyer’s bank provides the seller with an irrevocable undertaking to pay the invoice at maturity date, and BPU financing, where the seller’s bank provides financing by discounting the BPU of which they are a beneficiary.

The we.trade project started in 2017 with UniCredit and another six primary European Banks (Deutsche Bank, HSBC, KBC, Natixis, Rabobank and Société Générale, then latterly Nordea and Santander) who set up a consortium with the aim of simplifying the financial processes underlying international trade for SMEs. Following the decision of the consortium to establish the ‘we.trade Innovation DAC’ company in 2018, another four European Banks (CaixaBank, Erste Group, Eurobank and UBS) joined and will be available on the platform in the coming months. Currently, 13 European Banks operating in 14 European countries (Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Norway, Holland, Spain, Sweden, Switzerland and UK) are part of the initiative.