Australia and New Zealand-based ASB Bank has acquired a stake in a New Zealand startup developing a blockchain-powered trade management solution.
Reports in Scoop.co.nz said Monday (Aug. 12) that ASB Bank has invested in TradeWindow with funds that will support the startup's ongoing development of a distributed ledger technology-powered trade platform.
While financial details of the acquisition were not disclosed, ASB Bank Executive General Manager of Corporate Banking Nigel Annett said the bank would take a “significant” stake in TradeWindow.
“What began as collaboration through ASB's innovation program to solve a customer problem is now a fully-fledged business ready to launch,” Annett said in a statement. “TradeWindow has the potential to truly transform the way our customers experience the international trade process. By digitizing the trade process, businesses will be able to operate more efficiently with trust and security across the globe.”
According to reports, the investment follows ASB's piloting of the TradeWindow solution to facilitate trade between a South Korea-based importer and a New Zealand-based meat importer.
According to TradeWindow Founder and CEO AJ Smith, the platform is designed to address the growing risk of cyberattacks in global trade and supply chains, as well as to address the friction associated with sharing documentation and data across trading partners.
The solution offers the “instantaneous sharing of documentation that is currently couriered at significant cost between the various parties, including exporters, importers, banks, certifiers and insurance companies,” he said.
“With 12,000 registered exporters in New Zealand it represents a major market opportunity,” he said. “TradeWindow allows all relevant documents — from certificates to invoices — to be exchanged digitally using one touchpoint.”
Smith also said that the funding from ASB Bank represents a “vote of confidence” in the technology “and recognizes the potential our product has to streamline trading between Kiwi exporters and the rest of the world.”