Leading UK financial company Lloyd's Bank has joined WaveBL's electronic trade documentation platform as a partner.

Lloyd's clients can now transmit blockchain-based electronic Bills of Lading (eBLs) via the 136-nation WaveBL membership network.

The launch of Lloyd's new eBLs service opens up new trade avenues and provides sustainability benefits for its clients. It also represents a major advancement in the application of blockchain technology by established institutions.

In fact, Lloyd's is the UK's first bank to sign up for the WaveBL electronic trade documentation system.

Bills of Lading: Using blockchain to increase productivity
Bills of Lading, albeit not well known to consumers, are an essential document in the world of international trade.

They serve as a "receipt" for the products being sent and are provided by a carrier when a seller ships goods to a final consumer.

A Bill of Lading is issued to a buyer so they can claim a product upon delivery whenever payment for items is received in full or an agreed-upon payment date is set.

Bills of Lading are still primarily written on paper nowadays. However, Lloyd's can now facilitate the easy transfer of entirely digital, blockchain-based eBLs across organizations on the WaveBL network for its clients.

Because eBLs may be transferred between parties in minutes as opposed to days as with traditional paper versions, bills of lading can now be prepared much more quickly and securely.

This not only increases the effectiveness of international trade, but it also lowers the possibility of Bills of Lading documents being lost, stolen, or counterfeited.

"Paperless trade is the future, with tremendous benefits on offer in terms of economic growth, increased efficiency, reduced risk, and environmental sustainability," states Rogier van Lammeren, Head of Trade and Working Capital Products at Lloyds Bank.

"Two of the most important elements that will encourage and propel increased adoption are cooperation and creativity. The recent collaboration with WaveBL serves as an illustration of both.

"In addition to our current range of digital trade documentation solutions, our clients now have easy access to a worldwide platform for eBLs, allowing them to take advantage of possibilities quickly and securely while minimizing their environmental impact.”

By collaborating with WaveBL, Lloyd lessens the demand for paper and advances its environmental initiatives. Additionally, it is a component of its commitment to the eBLs declaration of the Future of International Trade (FIT) Alliance, which it signed in October 2023.

The International Federation of Freight Forwarders Associations (FIATA), the International Chamber of Commerce (ICC), Swift, the Digital Container Shipping Association (DCSA), and the Baltic and International Maritime Council (BIMCO) formed the FIT Alliance with the goal of increasing awareness and quickening the adoption of a standards-based electronic bill of lading (eBL) in all shipping-related sectors.

The declaration outlines a shared objective of achieving 100% eBL usage by 2030, as well as a shared support for higher rates of digitalization in global trade.

"Corporates are looking to prioritize digital trade solutions, and financial institutions have been looking at how they can meet this demand," says Ofer Ein Bar, VP of Financial Institutions at WaveBL.

"Our collaboration with Lloyds Bank, a frontrunner in trade digitalization, signifies a significant advancement for banks in aiding corporations in their digital transformation while augmenting client contentment."