Australian Bank Utilizes Ethereum for Cross-Border Shipments

A 17-ton, cross-border container of almonds was successfully transported from Australia to Germany utilizing the Ethereum blockchain, in a collaborative move between Commonwealth Bank of Australia and five logistics organizations.

The development represented one of the first instances of a state-backed shipment facilitating using blockchain technology.

Apart from eliminating intermediaries, bank authorities believe the platform reduces paperwork and legal formalities for businesses, making the shipping process significantly faster.

The CBA fulfilled this by housing all essential shipping information, task completion reports, and licenses on a private blockchain.

The use of blockchain at the documentation level allowed participants to access and upload required documents, including customs receipts, certificates of origin, and bill of lading.

Gerhard Ziems of Pacific National, the shipping participant, notes the use of blockchain helps to "Reimagine how the supply chain communicates" and relays sensitive information.

The bank has explored and experimented with the technology since 2016, which is reflective of the positive stance Australia holds towards digital assets and distributed ledger technologies.

CBA partnered with U.S. institutional bank Well Fargo in 2016 to conduct an experiment that merged traditional finance with blockchain technology.

The project saw the shipping of a cotton container from the U.S. to China using the blockchain.

The CBA appraised the Ethereum blockchain.