Top financial institutions around the globe are going in on blockchain in a big way, with massive investments in R&D and beyond. Larger corporations are exploring distributed ledger, too.

Now, seven major banks in Europe are looking to pull SMEs into the blockchain exploration.

Reports Monday (Jan. 16) said Deutsche Bank, HSBC, KBC, Natixis, Rabobank, Société Générale and UniCredit have signed a memorandum of understanding to collaborate on a blockchain-based trade finance and supply chain tool. KBC has already developed the proof of concept for the solution, but with the additional six banks working together, the FIs will develop it into a working solution called Digital Trade Chain (DTC).

According to the banks, the DTC will target SMEs that struggle with both domestic and international trade payments. The DTC will connect buyers, suppliers, banks and transporters online and via mobile devices, the announcement explained, to support the creation and transport of secure digital documents on distributed ledger technology.