Estimates suggest that such technology has the scope to reduce operational and compliance costs of paper-based trade financing by 10 to 15% and provide a platform for banks to grow revenues by as much as 15%.<sup> Distributed ledger technology's ability to provide a single, immutable record of a trade, verified by all parties involved in a transaction provides a number of clear benefits for trade financing. A collaboration between financial services firm Oracle and some of its consortium partners has resulted in the successful trial of self - executing settlement agreements to conduct both accounts receivable ( AR ) and line of credit ( LOC ) transactions . The trial has been claimed to exemplify the use of distributed ledger systems to streamline the processes of trade financing .
A collaboration between financial services firm Oracle and some of its consortium partners has resulted in the successful trial of self - executing settlement agreements to conduct both accounts receivable ( AR ) and line of credit ( LOC ) transactions . The trial has been claimed to exemplify the use of distributed ledger systems to streamline the processes of trade financing .