A REALITY CHECK: BLOCKCHAIN AND DLT IN INTERNATIONAL TRADE

Last updated: June 19, 2025, 20:04 | Written by: Jesse Powell

For years, blockchain technology has been touted as a revolutionary force, poised to disrupt industries and reshape global commerce. A Reality Check: Blockchain and DLT in International TradeIn the realm of international trade, the promise of distributed ledger technology (DLT), often synonymous with blockchain, has been particularly alluring. Innovation Report: A Reality Check: Blockchain and DLT in International Trade Challenges are merely opportunities in disguise. In this case, they are providing an opportunity for firms to break down the barriers to digitization and bring the industry into the future.The potential to streamline processes, enhance transparency, and reduce costs has fueled considerable excitement and investment.But after the initial wave of hype, where does the technology stand today?Is blockchain truly transforming global trade, or is it still navigating the challenges of implementation and scalability?A recent white paper, a collaborative effort by the World Trade Organization (WTO), Trade Finance Global (TFG), and the International Chamber of Commerce (ICC), seeks to provide a reality check.

This comprehensive study, drawing on insights from over 200 industry stakeholders, delves into the current state of blockchain and DLT in international trade, exploring both the opportunities and the obstacles. New study jointly conducted by international trade organizations focuses on possibilities and challenges of blockchain tech implementation to the industry. Distributed ledger technology, colloquially termed blockchain, is making a bold promise to help bring the trade industry into the digital age. To help shed light on the intricate workings of the technology and the role MoreIt examines the practical applications of the technology, the key challenges faced by companies involved in blockchain projects, and the actions needed to unlock its full potential.As this article explores, understanding the intricacies of DLT and blockchain is not a prerequisite for appreciating its transformative potential for international trade and trade finance. New study jointly conducted by international trade organizations focuses on possibilities and challenges of blockchain tech implementation to the industry.We will delve into this collaborative study and the wider implications for all stakeholders in the global marketplace.

Understanding the Promise of Blockchain in Global Trade

The allure of blockchain and DLT in international trade stems from their inherent characteristics. Skip to main content Bitcoin Insider. MenuThe tamper-proof and decentralized nature of these technologies offers a solution to some of the most pressing challenges in the industry. After years of hype around blockchain, the time has come for a reality check. 101 Blockchains hosts this webinar on Blockchain DLT in trade a reality check, presented by: Deepesh Patel, Director, Partnerships Marketing, Trade Finance Global; Webinar Discussion Topics:Traditionally, international trade has been characterized by complex, fragmented processes involving multiple intermediaries, paper-based documentation, and a lack of transparency.These inefficiencies lead to delays, increased costs, and heightened risks.

Blockchain technology offers a way to address these pain points by providing a secure, transparent, and efficient platform for conducting transactions.By creating a shared, immutable ledger that is accessible to all authorized participants, blockchain eliminates the need for intermediaries and reduces the risk of fraud. Live Prices. Bitcoin; Binance Coin; Bitcoin Cash; Cardano; Dogecoin; Ethereum; Litecoin; NEO; RippleThis technology enables counterparties to transact directly via a peer-to-peer network.

Here are some key benefits that blockchain and DLT bring to the table:

Increased Transparency: All transactions are recorded on a shared ledger, providing a clear and auditable trail.
Improved Efficiency: Automation and streamlined processes reduce delays and costs.
Enhanced Security: The tamper-proof nature of blockchain minimizes the risk of fraud and errors.
Reduced Intermediation: Direct transactions between parties eliminate the need for multiple intermediaries.
Greater Trust: The decentralized and transparent nature of blockchain fosters trust among participants.

Key Findings from the Reality Check White Paper

The white paper, titled ""Blockchain and DLT in Trade: A Reality Check,"" offers a valuable assessment of the current landscape. Building on the WTO publication Can Blockchain Revolutionize International Trade? authored by Emmanuelle Ganne and TFG s white paper Blockchain and Trade Finance, this study providesThe study, endorsed by the ICC, TFG and WTO, is based on a survey of over 200 respondents from banks, corporations, fintech companies, and trade associations, along with insights from over 20 consortia involved in blockchain projects.The key findings highlight both the progress made and the challenges that remain.

One significant finding is that while awareness of blockchain and DLT in international trade is high, actual implementation remains limited.Many organizations are still in the pilot phase, experimenting with different use cases and exploring the potential benefits.However, scaling these pilot projects to full-scale production deployments proves to be a major hurdle.Let's delve deeper into the obstacles that are preventing wider adoption.

Challenges Hindering Widespread Adoption

Despite the potential benefits, several challenges are impeding the widespread adoption of blockchain and DLT in international trade. To help shed light on the intricate workings of the technology and the role that it is playing in the international trade industry, Trade Finance Global partnered up with the World Trade Organization earlier this month to produce a 56-page report titled Blockchain DLT in Trade: A Reality Check, endorsed by the International Chamber ofThe white paper identifies the following key obstacles:

Lack of Interoperability: Different blockchain platforms often operate in silos, making it difficult to exchange data and transact seamlessly across networks.
Regulatory Uncertainty: The lack of clear and consistent regulations surrounding blockchain and digital assets creates uncertainty and discourages investment.
Scalability Issues: Some blockchain platforms struggle to handle large volumes of transactions, which can limit their applicability in international trade.
Data Privacy Concerns: The need to protect sensitive data while maintaining transparency raises complex challenges.
Lack of Standardization: The absence of common standards for data formats and protocols hinders interoperability and scalability.
Legacy Systems Integration: Integrating blockchain solutions with existing legacy systems can be complex and costly.
Cost and Complexity: Implementing and maintaining blockchain solutions can be expensive and require specialized expertise.

These challenges are not insurmountable, but they require a concerted effort from all stakeholders to overcome. Blockchain dlT in Trade: a reality Check 5 Holy Guacamole, avocado consumption has skyrocketed in the last decade. Health conscious consumers and trendy millennial hipsters across the world have contributed to a striking 150-foldCollaboration, standardization, and regulatory clarity are essential for unlocking the full potential of blockchain in international trade.

Overcoming the Hurdles: Strategies for Success

To address the challenges hindering the adoption of blockchain and DLT in international trade, the white paper proposes several actions that need to be taken.These include:

Promoting Interoperability: Developing common standards and protocols to enable seamless data exchange between different blockchain platforms.
Establishing Clear Regulations: Governments and regulatory bodies need to provide clear and consistent guidelines for the use of blockchain and digital assets in international trade.
Addressing Scalability Issues: Investing in research and development to improve the scalability of blockchain platforms.
Ensuring Data Privacy: Implementing robust data privacy measures to protect sensitive information while maintaining transparency.
Fostering Collaboration: Encouraging collaboration between industry stakeholders, governments, and technology providers to develop and deploy blockchain solutions.
Providing Education and Training: Equipping businesses and individuals with the knowledge and skills needed to understand and utilize blockchain technology.

By addressing these challenges and implementing these strategies, the industry can pave the way for wider adoption of blockchain and DLT in international trade.

Use Cases and Practical Applications

Despite the challenges, there are several promising use cases where blockchain and DLT are already demonstrating their value in international trade. 現実チェック：国際貿易におけるブロックチェーンとDLTThese include:

Trade Finance: Streamlining and automating trade finance processes, such as letters of credit and supply chain financing.
Supply Chain Management: Tracking and tracing goods throughout the supply chain, enhancing transparency and reducing the risk of counterfeiting.
Customs and Border Control: Facilitating cross-border trade by automating customs clearance and reducing paperwork.
Digital Identity: Creating secure and verifiable digital identities for businesses and individuals involved in international trade.
Payments and Settlements: Enabling faster and more efficient cross-border payments.

Let's examine a few examples in more detail:

Trade Finance Transformation

Trade finance, the lifeblood of international trade, is often characterized by cumbersome processes, lengthy delays, and high costs.Blockchain and DLT have the potential to revolutionize trade finance by automating key processes, reducing paperwork, and enhancing transparency.

For example, a letter of credit, a common instrument in trade finance, can take days or even weeks to process using traditional methods. Of particular interest for trade digitalization are projects leveraging distributed ledger technology (DLT) commonly referred to as Blockchain. The tamper-proof and decentralized nature of DLT makes it useful for breaking the silos that constrain international trade.By digitizing the letter of credit process on a blockchain platform, parties can reduce processing time to hours, eliminate errors, and improve efficiency. transform international trade. After years of hype around blockchain, the time has come for a reality check. 1 foreWord DEEPESH PATEL Editorial Director, Trade Finance Global (TFG) DAVID BISCHOF Deputy Director, Finance for Development, International Chamber of Commerce (ICC) EMMANUELLE GANNE Senior Analyst, Economic ResearchSeveral projects are already underway in this space.

Supply Chain Visibility

Supply chain management is another area where blockchain and DLT can make a significant impact. Based on a survey of more than 200 actors in the field, it analyses the key challenges that companies involved in blockchain projects are facing and discusses actions that may need to be taken to allow the technology to truly transform international trade.By tracking and tracing goods throughout the supply chain, businesses can gain greater visibility into the origin, movement, and condition of their products. p style= text-align: left !important; color: 00b0db !important; /This can help to reduce the risk of counterfeiting, improve product safety, and enhance supply chain resilience.

Consider the example of tracking agricultural products.By recording data on the blockchain at each stage of the supply chain, from farm to consumer, businesses can ensure the authenticity and quality of their products. The ITFA Board is pleased to share the Blockchain and DLT in Trade: A Reality Check white paper. This is a jointly produced white paper between the International Chamber of Commerce (ICC), the World Trade Organization (WTO) and Trade Finance Global (TFG).This is particularly important for high-value or perishable goods.

The Impact of COVID-19 on Digitalization

The COVID-19 pandemic has accelerated the trend towards digitalization in all industries, including international trade.The pandemic exposed the vulnerabilities of traditional paper-based processes and highlighted the need for more efficient and resilient supply chains. It s not necessary to understand the complexities of how the technology works to understand its practical applications for international trade and trade finance. Blockchain technology provides a way to transact directly via a peer-to-peer network securely meaning that counterparties can use the blockchain to transact without any middlemen.As a result, many businesses are now exploring the use of blockchain and DLT to address these challenges. Blockchain DLT in Trade - A Reality Check Rethinking and digitising the entire trade process The periodic table of DLT projects What are the key challenges and risks in what the future of the industry holds, according to 200 banks, corporates, fintechs and trade practitioners? Is COVID-19 causing rapid adoption of digitalisation - whyAccording to the white paper, the pandemic appears to have accelerated interest and investment into digitization of Trade.

While COVID-19 has spurred interest in digitalization, widespread adoption of blockchain solutions has not yet occurred. Geneva, 2nd December 2025. Today, at the WTO's 'Global Trade and Blockchain Forum', ICC, TFG and WTO released a white paper combining over 200 responses from banks, corporates, fintechs and associations in the trade sector, as well as over 20 consortia, on the broader impact that distributed ledger technology (DLT) is having on the trade industry.This suggests that while businesses recognize the potential benefits, the challenges outlined earlier still need to be addressed before they can fully embrace the technology.

The Role of Key Players: ICC, WTO, and TFG

The International Chamber of Commerce (ICC), the World Trade Organization (WTO), and Trade Finance Global (TFG) play crucial roles in promoting the adoption of blockchain and DLT in international trade.These organizations bring together governments, businesses, and technology providers to foster collaboration, develop standards, and promote best practices.

The publication of the ""Blockchain and DLT in Trade: A Reality Check"" white paper is a testament to their commitment to advancing the adoption of these technologies. The conference saw the launch of a new publication, Blockchain DLT in Trade: A Reality Check, co-authored by Emmanuelle Ganne of the World Trade Organization and Deepesh Patel of Trade Finance Global. The publication provides an overview of the main projects underway in trade and blockchain, with a focus on trade finance, shippingBy providing a comprehensive assessment of the current landscape, the white paper serves as a valuable resource for businesses and policymakers alike.

Looking Ahead: The Future of Blockchain in International Trade

While the journey towards widespread adoption of blockchain and DLT in international trade is still ongoing, the potential benefits are undeniable. Organization (WTO), Trade Finance Global (TFG), and the International Chamber of Commerce (ICC) have teamed up to produce this white paper exploring the broader impact that DLT is having on the trade industry.As the technology matures, standards emerge, and regulations become clearer, we can expect to see wider adoption of these technologies across a range of use cases.The future of global trade is increasingly intertwined with the evolution of blockchain and other distributed ledger technologies.

What can we expect to see in the coming years?

Increased Collaboration: Greater collaboration between industry stakeholders, governments, and technology providers.
Emergence of Standards: Development of common standards and protocols for data formats and interoperability.
Regulatory Clarity: Clear and consistent regulations surrounding the use of blockchain and digital assets in international trade.
Scalability Improvements: Advances in blockchain technology that address scalability limitations.
Broader Adoption: Wider adoption of blockchain solutions across a range of use cases, including trade finance, supply chain management, and customs clearance.

Conclusion: Embracing the Reality and the Potential

The ""Blockchain and DLT in Trade: A Reality Check"" white paper provides a valuable snapshot of the current state of blockchain technology in international trade.While the hype surrounding blockchain may have tempered, the underlying potential remains significant.The technology offers a powerful solution to many of the challenges facing the industry, including inefficiencies, lack of transparency, and high costs. NOVEMBER 2025 BLOCKCHAIN DLT IN TRADE: A REALITY CHECK deepesh patel (TFg) emmanuelle ganne (WTo) This is a jointly produced white paper between Deepesh Patel, Editorial Director, Trade Finance Global (TFG), and Emmanuelle Ganne, Senior Analyst at the World Trade Organization (WTO).The white paper highlights the importance of addressing key challenges such as interoperability, regulatory uncertainty, and scalability in order to unlock the full potential of blockchain.This can be achieved through standardization, better understanding of the technology and a multi-stakeholder approach.

Despite the obstacles, there are already several promising use cases where blockchain and DLT are demonstrating their value.As the technology matures and the ecosystem evolves, we can expect to see wider adoption of these technologies across a range of applications. New study jointly conducted by international trade organizations focuses on possibilities and challenges of blockchain tech implementation to the industry. Distributed ledger technologyThe collaborative efforts of organizations like the ICC, WTO, and TFG are essential for driving this progress.To stay ahead in the rapidly evolving world of global trade, businesses must embrace the reality of blockchain and DLT and explore the opportunities that these technologies offer. Blockchain DLT in Trae: Where Do We Stan 9 WHAT S DIFFERENT? Source: Blockchain DLT Projects in Trade: A Reality Check, by ICC, TFG, WTO, 3.2 Since the original rendition of the Periodic table of DLT projects was published in December 2025, a lot has changed for the industry.Consider investing in research, participating in pilot projects, and collaborating with industry peers to prepare for the future of international trade.