Today, the Central Bank of Brazil (BCB) announced its collaboration with Banco Inter, Microsoft Brazil, 7COMm, and Chainlink in the second phase of its DREX digital Brazilian Real pilot to build a solution that leverages blockchain technology and oracles to automate supply chain management and improve trade finance processes.
The solution involves tokenizing an electronic bill of lading (eBoL) onchain and using supply chain data to trigger payments to exporters throughout the shipping process. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) will enable interoperability between BCB’s DREX and a foreign central bank to demonstrate how blockchain-based trade finance unlocks Delivery versus Payment (DvP) and Payment versus Payment (PvP).
As the industry-standard decentralized computing platform, Chainlink has enabled over $16 trillion in transaction value through a comprehensive set of oracle services including CCIP, which achieves the highest level of cross-chain security and features a separate Risk Management Network.
Leading DeFi protocols, DEXs, and traditional financial institutions are integrating CCIP as the standard for enhancing the utility, efficiency, and liquidity of tokenized real-world assets, such as DREX and other central bank digital currencies (CBDCs), throughout the multi-chain economy.
“Chainlink CCIP is essential to enabling secure cross-border, cross-currency, and cross-chain transactions and will help showcase what tokenized assets can do at scale for this key CBDC use case in Brazil,” said Angela Walker, Global Head of Banking and Capital Markets at Chainlink Labs, in an official announcement.
Microsoft will provide cloud services for the project, while Banco Inter, Brazil’s first 100% digital bank, will lead implementation efforts on the DREX platform in Brazil.
“We see collaborating in this project with technology leaders like Microsoft and Chainlink Labs as a transformative opportunity to expand market reach and improve the health of the Brazilian market,” said Bruno Grossi, Banco Inter’s Head of Emerging Technologies.
Digital solutions provider 7COMm will support the project’s technical implementation delivery. Sergio Yamani, 7COMm’s Chief Innovation and New Business Development Officer, highlighted the project’s potential to enhance Brazil’s economy.
“The advent of CBDCs, the development of blockchain interoperability protocols such as CCIP, and the use of CBDCs for cross-border payments enable a new generation of blockchain trade finance solutions.”