Indian IT giant Infosys is exploring the potential of blockchain technology to bring new efficiencies in trade finance.

Infosys Finacle, a subsidiary of the firm, announced Wednesday the development of a trade network called India Trade Connect (ITC) in partnership with seven Indian private banks, including ICICI, Axis Bank, South Indian Bank and Yes Bank.

The blockchain-based network has been designed to digitize trade finance business processes and covers areas such as ownership validation, certification of documents and payments.

ITC is currently being used by the banks for a pilot project, using the blockchain-based solution to, a release states, increase automation and transparency, and help manage risks in trade and supply chain financing. According to Infosys, ITC has been built to be blockchain "agnostic" in order to "future-proof" the network against future changes in technology.

Sanat Rao, chief business officer at Infosys Finacle, said he hopes to bring more banks into the consortium in order so they can learn about the potential benefits of blockchain systems.

Rao said:

ICICI bank, which recently announced a blockchain trade finance initiative involving over 250 companies, said that the partnership "will enable automation, increase transparency as well as enhance efficiency across trade and supply chain operations."

Going forward, the group aims to create a "comprehensive blockchain ecosystem, thereby contributing towards greater adoption of this technology," said Ajay Gupta, senior general manager at ICICI Bank.

Infosys building image via Shutterstock