MakerDAO, creators of the Dai stablecoin, and Blockshipping, creators of the Global Shared Container Platform, (GSCP), are working together to transform the global container shipping industry, enabling significant savings in cost and CO2 emissions. The partnership is expected to accelerate development and availability of the Blockshipping GSCP by leveraging Maker DAO’s proven Dai Stablecoin System to power the GSCP platform.
MakerDAO and Blockshipping today announce a partnership to collaborate on transforming a critical part of the global supply chain industry – the container shipping industry.
Blockshipping is developing the blockchain based GSCP platform, which will be both the first global registry of the world’s approximately 27 million shipping containers and a joint platform for all players in the container shipping industry – allowing them to efficiently conduct a wide range of transactions related to the handling of shipping containers globally. Elements of the GSCP platform will utilize Maker’s proven Dai Stablecoin system.
The GSCP platform has the potential to reduce costs for the global shipping industry to the tune of USD $5.7 billion annually and reduce the global CO2 emission by more than 4.6 million tons every year.
ACCELERATING THE PLATFORM DEVELOPMENT
Blockshipping’s CEO, Peter Ludvigsen, is pleased with the prospect of accelerating the development of the GSCP platform through a collaboration with MakerDAO:
We believe that there is huge potential value in what Dai the stablecoin will bring to the GSCP platform. Leveraging Maker’s Dai Stablecoin System will enable Blockshipping to increase the pace of development of the GSCP platform and reduce time to market.
Rune Christensen, CEO of MakerDAO, sees a lot of possible benefits to Blockshipping by using the Dai Stability System to power the GSCP platform.
We look forward to a partnership with Blockshipping in developing the best possible solution for transforming the container shipping space, where the Blockshipping solutions on the longer term can be “powered by Dai. We are very eager to show that our stablecoin system is perfectly designed for supply chain projects like Blockshipping’s GSCP platform.
The MakerDAO Stablecoin System has created a digital currency, Dai, which is soft-pegged to the US dollar, bringing stability to the blockchain economy and enabling transaction in cryptocurrencies. Unlike other stablecoin systems, the Maker platform is backed by collateral, using smart contracts to always ensure the right balance between the amount of Dai and the collateral backing the issued Dai. It is a decentralized infrastructure without a central operator.
Launched in December 2017, the beta Dai Stablecoin System accepts Ether (ETH) as collateral but will introduce multi-collateral options this summer. As the platform evolves, there will be increased support for collateral types, including tokenized commodities and, in theory, even a batch of bicycles in a container or the shipping containers themselves could be tokenized and used as collateral for issuing Dai on MakerDAO’s platform. More information can be found at www.makerdao.com.
COMMON SCANDINAVIAN ORIGIN
Both MakerDAO and Blockshipping offer global platforms and works internationally, yet both companies have distinct Scandinavian origins and Danish founders and CEOs. This common cultural heritage makes for a shared focus on common values of trust and transparency.
Blockshipping is currently working out of Copenhagen, and MakerDAO, who already have five offices around the world, is exploring a possible relocation of its headquarters to Copenhagen within the next year.
For more information, please contact:
Michael Juul Rugaard
E-mail: [email protected]
Telephone: +45 44 40 31 32
Søren Peter Nielsen
E-mail: [email protected]
Telephone: +45 60 62 17 41
JPMorgan’s Blockchain Network to Launch in Japan in Early 2020: Report
JPMorgan’s blockchain-based payment network will launch in Japan in early 2020, Cointelegraph Japan reports on Dec. 10.
Based on JPMorgan’s in-house blockchain platform Quorum, the Interbank Information Network (IIN) intends to accelerate payment transactions as well as address major challenges of sharing data between banks.
Bloomberg reports that more than 80 Japanese banks have expressed their intent to join the platform. Japanese banks now account for more than 20% of the 365 total global members that announced their participation since September 2019, accounting for the largest portion of participants from any single country.
Daizaburo Sanai, an executive director at the JPMorgan, stated that the INN is currently operating at 70 banks in Europe, Asia and the United States. As Japanese banks have not participated to date, they are expected to start integrating with the INN in January 2020, the report notes.
According to Sanai, Japanese firms want to join the platform in order to improve Anti-Money Laundering measures because the tool reportedly makes the tracking of cash recipients “faster and more efficient.”
Launched as a pilot in 2017, the IIN was joined by Germany’s largest bank, Deutsche Bank, in mid-September 2019.
JPMorgan and blockchain
JPMorgan, reportedly the second largest investment bank in the world after Goldman Sachs, has been actively exploring blockchain and crypto-related initiatives. The company is known for its own cryptocurrency JPM Coin, which is expected to launch in late 2019, as reported in June.
Most recently, JPMorgan announced a new project for derivatives designed to speed up cash and collateral transfers. According to an official announcement in mid-November, JPMorgan partnered with California-based fintech firm Baton Systems to enable instant movement of transfers to multiple clearinghouses.
One of China’s Largest Banks Uses Blockchain for Bond Issuances
This October, President Xi Jinping of China revealed in a statement to some of the nation’s top officials that he would be pushing for the formal adoption of blockchain technologies.
Xi’s statement implied that he has high ambitions for this blockchain push, with the world leader mentioning finance and healthcare to supply chains as industries that this fledgling class of technologies could improve.
And it seems that things are off to a good start.
Chinese media reported late last week that one of the region’s largest banks, the Bank of China has used blockchain to issue bonds, marking a positive step forward for proponents of the technology in a time when Bitcoin, something integral to the broader blockchain industry, is seemingly on thin ice.
Bank of China Taps Blockchain
According to an article from Chinese business news site Sina Finance released on Friday last week, the Bank of China — one of the biggest state-owned commercial banks in China not to be confused with the central bank of the People’s Bank of China — recently completed the issuance of a 20 billion yuan (just around $2.8 billion U.S. dollars) worth of small enterprise and micro-enterprise bonds via blockchain.
A “self-developed” bond issuance system built on ledger technologies was the one utilized, the article asserts. The article implied that the bond was issued end to end by the blockchain system, mentioning that the program “covers the three stages of bond issuance, including preparation, bookkeeping filing, and pricing and placement.”
The Bank of China issued these bonds, which are two-year bonds with a coupon rate of 3.25%, to help support the development of smaller enterprises across China, thereby allowing the economy to expand.
This isn’t the first time that the Bank of China has dabbled in blockchain.
In July, the bank released an extensive article on the Bitcoin phenomenon. The authors of the odd report, which came at a time when blockchain and digital assets were still vehemently verboten in the region, mentioned how Bitcoin works, why the prices of cryptocurrencies are rising over time, and why BTC inherently has value.
That’s not all. An infographic contained in the article portrays key points in the history of the cryptocurrency space. It makes mention of the infamous Bitcoin pizzas, Warren Buffett’s thoughts on cryptocurrency, the 21 million coin supply cap, and its tumultuous price trends over the years.
Other Banks Are Using Blockchains for Bonds Too
This is far from the first time that a large institution has used blockchain for bond issuance.
Banco Santander, the largest bank in Spain and the 16th largest bank in the world, earlier this year issued the “first end-to-end blockchain bond” using Ethereum and ERC-20 tokens.
The $20 million bond offers a “quarterly coupon of 1.98%” through the bank’s Securities Services department, which is “acting as tokenization agent and custodian of the cryptographic keys” for the investment vehicle.
In other words, Santander turned a bond into a security token. While it isn’t clear if this was more profitable than the presumably analog system the bank used prior, Santander CFO José García Cantera has said:
“Santander is at the forefront of the profound digital transformation of the financial sector and this transaction is one example. We want to take advantage of any technology that can accelerate that process, so that our customers thrive and be faster and more efficient, and blockchain is one of those technologies.”
There’s also Fat Burger, the fast food and American food restaurant chain which earlier this year partnered with Cadence, a Coinbase-backed company, to issue $30 million worth of bonds via Ethereum in a move similar to Santander’s.
Santander Exec Claims Blockchain Success as Bank Redeems Ethereum-Issued Bond
Spanish banking multinational Santander has redeemed a bond worth $20 million that it issued on the public ethereum blockchain in September.
With the move, John Whelan, head of Digital Investment Banking at Santander and chairman of the Enterprise Ethereum Alliance, hailed the technology as a real-world solution for securities issuance.
In a tweet posted Tuesday, Whelan said:
“We just performed an early redemption of our blockchain-based bond that we issued on September 10th, 2019. This unequivocally proves that a debt security can be managed through its full lifecycle on a blockchain (public in this case).”
He also provided public blockchain transactions on Etherscan as proof of the transaction, which can be seen here (issuer wallet) and here (investor wallet). In this pilot transaction, Santander was both investor and issuer.
When it announced the news three months ago, Santander said it had become the first institution to use a public blockchain to manage all aspects of a bond issuance.
The bank used a custom ethereum token to represents the $20 million bond, and settled it with another token that represents cash held in a custody account.
While other entities such as the World Bank and Societe Generale have also issued blockchain-based bonds, Santander appears to be the only entity to have automated the whole process on a public chain. Santander Security Services even custodied the cryptographic keys for the tokenized security and cash.
“It’s an evolutionary step,” Whelan said in September. “There are no secondary markets yet, but we are on that path.”