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Commerzbank Tests Blockchain for Managing Corporate Supply Chains

By Regtech Africa May 22, 2021

The Commerzbank AG logo sits illuminated outside a bank branch as the German lender's headquarters stand beyond in Frankfurt, Germany, on Thursday, Oct. 20, 2016. Unlike Deutsche Bank, which announced plans in June to reduce its branches to 535 from 723 next year, Commerzbank says its branch network is key to its strategy to add two million new clients by 2020, double its previous target. Photographer: Krisztian Bocsi/Bloomberg

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Commerzbank joined with chemical firms Evonik and BASF to test the use of blockchain and programmable money in managing supply chains between two companies.

Payments were made in a fully automated and digital manner using programmable digital euros based on e-money using Commerzbank’s blockchain platform, the German bank said.

The two German chemical companies transmitted data to Commerzbank, which generated a “complete and tamper-proof depiction” of the business processes, with smart contracts validating the transaction.

Following the pilot, the firms agreed to expand the project to other supply-chain partners in the coming months.

Commerzbank announced in July 2017 it was looking at blockchain technology as a means of digitizing supply chains.

BASF’s involvement with blockchain also goes back to 2017, when it revealed it was investigating the potential in tracking the shipment of goods.

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