Cointelegraph reported about a pilot forex forward transaction using a blockchain. Commerzbank, a German bank and ThyssenKrupp teamed up to perform this demonstration. The transaction value was placed at €500,000.

Live Trader, an FX trading platform operated by Commerzbank managed the transaction after ThyssenKrupp initiated it on Wednesday. A technology provided by the R3 blockchain consortium, Corda, verified the transaction.

According to an online post by Commerzbank, the goal of this test was to see if blockchain could accelerate transactions while improving accuracy. In essence, the bank hopes that blockchain technology may reduce the risks that threaten routine FX transactions.

Using the Corda ledger, blockchain eliminates the need to synchronize your transactions. Instead, it creates a permanent record that no one can change.

Commerzbank’s fixed income director, Nikolaus Giesbert, believes that blockchain’s reduced transaction costs and enhanced security will improve FX trading. Giesbert seems particularly interested in using blockchain to reduce fraud.

Reflecting on the pilot forex forward transaction, Geisbert praised the effort to dedicate resources to make it work. As a matter of fact, he praised the way the ledger system was able to successfully digitize every aspect of it.

Although the Commerzbank exchange was among the first to involve FX, other banks have also experimented with blockchain technology. For example, last month, BBVA, a bank based in Spain, issued a loan using that framework. That loan was valued at €75 mln and reduced processing time to a matter of hours. Previously, that same loan may have required several days to process.

In another test, an international payment was sent between a bank in Thailand and the banking unit of Mitsubishi. The test also involved a Singapore-based bank as well as Thai regulators. Ultimately, the event proved the feasibility of international financial transactions on the blockchain.

Capping off this latest round of developments, Banco Masventas of Argentina joined Bites, a blockchain-driven financial firm to replace SWIFT with Bitcoin while sending money between countries.