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Industry roundup: 20 May

MineHub and Contour partner on supply chain digitisation in metals and mining industry

MineHub and Contour have partnered to integrate their digital supply chain and trade finance technology solutions for the global metals and mining industry. MineHub’s platform provides real-time visibility and collaboration of upstream and downstream supply chains, while Contour brings together banks, corporates and other ecosystem partners on a common, digital network for trade finance. Both MineHub and Contour are built on enterprise-grade blockchain technology. 

Digital transformation is estimated to generate more than US$320bn of value in the metals and mining industry over the next decade, including US$77bn through integration of technologies such as Contour and MineHub that enable better data exchange amongst participants.

The partnership will enable trades on MineHub to flow seamlessly into the Contour network, where a digital letter of credit (LC) can be created using API connectivity. MineHub digitises the supply chain by allowing miners to capture mineral digital contracts with buyers and streamline post-trade operations, including document flow, financing, ESG reporting and logistics.

These trades can then be financed on Contour, which digitises traditional paper-based LC processes, improving transparency and reducing presentation time from up to two weeks to under 24 hours. The two firms also intend to roll out functionality that provides a time status on the progress of LCs within the MineHub platform. 


RMB slips in international currency charts

The latest results from SWIFT's RMB Tracker show that, in April 2021, the RMB has dropped one position to the sixth most active currency for global payments by value, with a share of 1.95%. Overall, RMB payments value decreased by 30.49% compared to March 2021, whilst in general all payments currencies decreased by 11.04%. In terms of international payments excluding payments within the Eurozone, the RMB ranked 7th with a share of 1.21% in April 2021. 

As a global currency in trade finance market, based on the value of live and delivered MT 400 and MT 700 messages exchanged on SWIFT, the RMB remained the third most active currency in April 2021, with a 1.70% share. It only trailed the euro (6.06%) and the US dollar (87.90%), and remained ahead of the Japanese yen (1.47%). 

The top economies for FX spot transactions in RMB in April 2021 were:

  • UK: 35.28%
  • China: 15.57%
  • US: 12.59%
  • Hong Kong: 10.92%
  • France: 7.18%

This is based on the value of FX confirmations, including central banks, inter-group only, looking at MT 300 messages exchanged on SWIFT.


VTB rolls out electronic tax guarantee service for large corporates

VTB has started issuing electronic tax guarantees to clients from large corporate business. This service allows VTB corporate clients to significantly speed up the submission of documents to Russia's Federal Tax Service and also the reimbursement of taxes paid. VTB has previously launched a service for issuing electronic bank guarantees to customers of medium and small businesses.

The electronic tax guarantee is signed with an enhanced qualified electronic signature and transmitted to the client via the VTB Business Online Remote Banking System for further transmission through electronic document management channels to the tax authorities.

"VTB's priority in implementing this technological transformation is to create the most convenient and secure services for our customers," said Vadim Kulik, deputy president and chairman of the Management Board of VTB. "One of the most important tasks for us is to create digital solutions that speed up routine processes and allocate time to solving strategic tasks for corporate clients. The service for issuing electronic bank guarantees to clients from large corporate businesses is another step in this direction. The service’s digital solutions not only allow customers to speed up the refund of taxes paid but also brings the security of the process to a new level by increasing the system’s reliability."

VTB continues to actively develop digital services for documentary operations: in December, it became the first bank in Russia to issue a digital bank guarantee in the mode of commercial operation of the Russian blockchain platform Masterchain - the first certified blockchain platform that uses cryptographic information protection tools.


Rabobank and OFX invest in spin-off venture TreasurUp

Rabobank's TreasurUp venture will spin-off through a series A funding round together with Australian listed cross border payments specialist OFX, while Rabobank will remain as shareholder. Next to these major shareholders, management and TreasurUp's engineering partner COERA will co-invest.

The spin-off is designed to allow TreasurUp to accelerate as an online treasury service provider for banks.

In the coming years TreasurUp will focus on expansion outside Europe and the development of new treasury modules and services for banks. It will offer banks both a state-of-art front-end and a platform for cross border payments and risk management.

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