Blockchain Fintech we.trade Shuts down Operations

Blockchain fintech we.trade, which brands itself as “a digital one stop shop” for supply chain trade, is shutting down its operations.

According to a report, the company has proposed to appoint PwC as a liquidator.

The venture – “the world’s first enterprise-grade blockchain-enabled trade finance platform” – was set up in 2017 by 12 banks, who are shareholders. These include, CaixaBank, Deutsche Bank, Erste Group, HSBC, KBC, Nordea, Rabobank, Santander, Societe Generale, UBS and UniCredit.

It was commercially launched in 2019.

Based on Hyperledger, we.trade offers to connect small and medium businesses (SMBs) to banks, by streamlining traditionally paper-based transaction tasks such as letters of credit and the financing for cross-border and international trade.

The company also provides traders with access to insurance, credit rating, financing and logistics services, and the network itself can be used as a search engine for new partners.

IBM joined the consortium in 2020 and took a 7% stake in the business.

The business continued to struggle, however, and half of its workforce was laid off later that year.

The company says its technology is currently licensed by 16 banks across 15 countries. Among licensees are UniCredit in Germany, EuroBank in Greece, and ČSOB, Komerční Banka and Česká Spořitelna in the Czech Republic.

(Source: Fintech Futures)