A collaboration between financial innovation firm R3 and some of its consortium banks has resulted in the successful trial of self-executing transaction agreements to conduct both accounts receivable (AR) and letter of credit (LOC) transactions. The ARs are a new type of payment that can be made directly from one bank account to another without going through an intermediary bank.
A collaboration between financial innovation firm R3 and some of its consortium banks has resulted in the successful trial of self-executing transaction agreements to conduct both accounts receivable (AR) and letter of credit (LOC) transactions. The trial has been claimed to exemplify the ability of distributed ledger technology to streamline the processes of trade financing.