IBM has announced a blockchain technology that will be used by seven European banks, to facilitate international trade for small and medium-size enterprises.

Deutsche Bank, HSBC, KBC, Natixis, Rabobank, Societe Generale and Unicredit are part of the consortium.

IBM is building this new blockchain, Digital Trade Chain, to help parties track, manage and transact internationally. The tech solution will be built on Hyperledger Fabric, an open source blockchain framework, and will go live by the end of the year.

Wiebe Draijer, chairman of the executive board at Rabobank, explains that when a merchant sells goods to another party and those goods arrive, the blockchain triggers a payment to take place. The aim is to move the payment into that blockchain solution, when the payment in blockchain is ready to be robust for large-scale application.