WaveBL, the leading blockchain-based electronic Bill of Lading (eBL) platform, has completed a groundbreaking Proof of Value (POV) with Swift and the participation of five global banks: Lloyds, Emirates NBD Bank, Federal Bank Limited, and other banks, as well as MSC Mediterranean Shipping Company (MSC), a leading ocean carrier acting as an eBL issuer on WaveBL. The POV successfully demonstrated the transfer of a series of structured electronic document presentations (including eBLs) originated on the Platform and sent to and between Swift members, and back to the Platform, all as part of a Letter of Credit (LC) transaction. The process was executed utilizing a series of Swift FIN messages and FileAct transfers from WaveBL to the different banks while maintaining possession and title management of the electronic trade documents on the WaveBL's ledger of issuance.

Describing the Flow of the POV:

The POV involved two eBLs—one straight and one negotiable—both issued by MSC on the WaveBL platform. The eBLs were first sent to an exporter on the WaveBL platform, where commercial documents like a packing list, invoice, and certificate of origin were added. These were then sent to the advising bank by the Platform over the secure and resilient Swift network, using an MT message and a FileAct document transfer. In turn, the advising bank and the issuing bank exchanged the presentation between them while WaveBL's ledger maintained the tracking of possession and title of the contained eBLs. Ultimately, the issuing bank released the documents to the LC applicant, who is the importer, including the endorsement of the negotiable eBL from the issuing bank to the order of the importer on the Platform, all of which was instructed to the Platform through a Swift MT message. This streamlined process allows for payments to be received within hours, rather than days - as is often the case with transactions that involve the physical transfer of documents. Similarly, with the eBLs surrendered back to MSC on the Platform, the importer was able to collect the goods at the port of destination without delay.

Strengthening the Supply Chain-Trade Finance Connectivity: The WaveBL Swift Gateway

This groundbreaking POV underscores WaveBL's dedication to making its network fully integrated with the financial system, allowing customers to seamlessly interact with Swift members and among participants themselves. For Swift members, electronic trade documents could soon be exchanged via WaveBL using their existing Swift infrastructure, and without requiring the installation or use of any specialized software or service.

WaveBL anticipates that the concept led through this POV will further its mission of creating seamless connectivity between the supply chain and financial markets, driving the shift towards 100% adoption of eBLs, as outlined in the FIT Alliance Declaration of September 2023. WaveBL is also looking forward to becoming the first electronic trade document provider to achieve full connectivity with the entire Swift community, allowing all banks a simple, standardized way to receive and send electronic bank presentations originated on the platform.

Innovative Approach by Leading Banks

The Participating Banks have all previously demonstrated exceptional innovation by using WaveBL as their entry point to the eBL market, gaining experience by exchanging electronic trade document presentations in live commercial transactions. As part of the POV, WaveBL, Swift and the Participating Banks established a joint working group aimed at analysing the methodologies and structure of the Swift MT messages and the electronic presentations proven during the POV. Their involvement highlights a joint commitment to advancing trade finance through digitization and embracing cutting-edge technologies for document exchange. WaveBL is eager to continue working with the joint working group as its expected integration with the Swift network unfolds.

Quotes:

  1. Boaz Lessem, Chief of Legal Regulation and Partnerships, WaveBL:
  2. "As the eBL market continues to grow, this POV solidifies our vision of seamless connectivity between WaveBL and Swift, providing a new, standardized solution for banks that prefer not to use the platform's interface directly. By leveraging Swift's trusted infrastructure, banks will now be able to exchange electronic trade documents with ease, enabling greater flexibility and efficiency in trade finance. I believe this connectivity will lead the way to an increased value proposition for the electronic transformation to eBLs. I thank the Swift team for its ongoing leadership and support as part of this POV, driving forward this important initiative in trade finance digitization."
  3. Ofer Ein Bar, Head of Financial Institutions, WaveBL:
  4. "We are excited to continue working with Swift and the distinguished banks that participated in this POV, unlocking new liquidity opportunities and enhancing operational efficiency through this innovative collaboration. We are particularly grateful to the participating banks for their contribution and ongoing efforts working with us hand in hand making this POV a robust proposition to allow the transition to a digital trade product."
  5. Miguel Suarez, Trade and Consumer Payments Innovation Lead, Swift:
  6. "Creating a truly digital trade ecosystem will require a collaborative effort from across the industry. This POV has successfully demonstrated the value of the Swift network in removing friction from global trade while enabling banks to make use of their existing infrastructure, while pushing boundaries to increase speed and certainty for the parties involved."
  7. Andre Simha, Global Chief Digital & Innovation Officer, MSC:
    "MSC is committed to achieving full digitalization of our bills of lading by 2030. This involves much more than streamlining processes. It embodies an ambitious vision that requires collaboration across both the shipping and finance sectors. We are delighted to have been able to partner with industry leaders like Swift and WaveBL on this POV. This collaboration represents a pivotal milestone that propels us one step closer to achieving our goals."
  8. Gwynne Master, Managing Director, Trade & Working Capital, Lloyds, UK:
  9. "Lloyds is an early adopter of the eBL and digitising this important document is essential for UK and global businesses, regardless of size. This POV sets out a compelling way of increasing bank adoption of digital solutions, enabling financial institutions to connect to WaveBL via SWIFT. We look forward to the implementation of this solution and to the continued collaboration across the industry to deliver on the FIT Alliance's ambitious eBL targets."
  10. Sanjay Borade, VP and Head of Trade Sales, Federal Bank India and Mohammed Vaseem Sheikh Dy VP and Head - Financial Institutions Group (FIG) & Institutional Sales, Federal Bank, India:
    "The successful completion of this POV reinforces the importance of digital transformation in trade finance. By leveraging WaveBL's supply chain platform in conjunction with Swift, we've been able to simplify the complexities of cross-border trade and improve overall efficiency."
  11. Anith Daniel, Group Head of Transaction Banking Services, Emirates NBD, UAE:
  12. "In today's rapidly evolving financial landscape the integration of WaveBL with SWIFT, for the exchange of trade documents, marks a significant step forward in modernizing Trade Finance. Our participation in the POV is a testament to our commitment in exploring innovative solutions that improve customer experience."