Troubled Commerzbank Tests Blockchain Machine to Machine Payments with Daimler

Frankfurt bank and financial services firm Commerzbank tested blockchain-based machine to machine payments with trucks produced by the firm behind the Mercedes-Benz auto brand, Daimler.

Automated, human-free, payments

According to a Commerzbank press release published on Aug. 8, the bank tested the exchange and settlement of payments between an electronic charging point and a Daimler truck system without any human intervention. To allow the transaction, the bank reportedly tokenized euros on the blockchain used in the pilot and provided the funds to the automaker to process the payments.

Towards a more efficient supply chain

The aim of the system is to allow for the next generation machinery to operate with a greater degree of autonomy. Commerzbank divisional board member transaction banking, Stephan Müller, explains that allowing machines to perform mutual payments is the logical next step in increasing supply chain efficiency. He said:

“After having completely digitised securities transactions in past pilot projects, the focus is now shifting to DLT-based payment structures. […] As a bank we see our mandate as creating new digital payment architectures for our clients.”

According to Owler, Commerzbank’s annual revenue is  $10.2 billion and Daimler’s $186.9 billion.

As Cointelegraph reported in July, in seemingly related news, Daimer partnered with European blockchain interface solutions startup Riddle & Code to provide an open car hardware wallet solution.