Marco Polo, the blockchain trade financing network, has gone bankrupt

It is reported that the holding company of Marco Polo Trade Finance Network (formerly TradeIX) entered bankruptcy in Ireland. The blockchain network has more than 30 bank members, such as Commerzbank, Bank of New York Mellon and SMBC. Its supporters include ING Ventures and BNP Paribas. Recently, a potential $12 million deal with Bank of America failed, and the company failed to find a substitute investor. The company’s liabilities exceed its assets by 2.5 million euros (2.6 million dollars). The total debt is 5.2 million euros (5.5 million dollars), of which the tax bureau owes 2.6 million euros (2.7 million dollars). The latest account submitted is the account for 2021, showing a loss of nearly US $29 million and a cumulative loss of US $85 million. The largest external shareholder is Kistefos, followed by Japan’s SBI, ING, SMBC and BNP Paribas.

Interpretation of this information:

The holding company of Marco Polo Trade Finance Network, formerly TradeIX, has entered bankruptcy in Ireland, according to reports. The blockchain network boasts a membership of over 30 banks, including major institutions such as Bank of New York Mellon, Commerzbank, and SMBC. ING Ventures and BNP Paribas are also among the network’s supporters. However, a recent $12 million deal with Bank of America fell through, and no substitute investor could be found, leaving the company with liabilities exceeding its assets by €2.5 million. The total debt is €5.2 million, with the tax bureau alone owing €2.6 million. The company’s latest account for 2021 shows a loss of almost $29 million, adding to a cumulative loss of $85 million.

Interpretation:

The news marks a significant setback for the Marco Polo Trade Finance Network, which had been seen as a leading blockchain platform for trade finance transactions. The company’s difficulties suggest that blockchain adoption in the sector is proving more challenging than previously thought. While a number of major banks are members of the network, it appears that none were willing to step in and support the struggling firm. The collapse of the Bank of America deal is a major blow, as it would have allowed for the development of new products and expansion into new markets.

The news could also be significant for other blockchain networks that have been targeting trade finance. With Marco Polo struggling to attract financing and develop new products, other networks may find it harder to attract investors and convince banks to adopt the technology. The situation also raises questions about the long-term viability of blockchain in trade finance, as even large and well-funded networks such as Marco Polo seem to be struggling to gain traction.