International Group of P&I Clubs Authorizes Wave As Approved Paperless Trading Solution
13 January 2020
TEL AVIV, Israel, Jan. 13, 2020 /PRNewswire/ -- Wave is pleased to announce International Group of Protection & Indemnity Club (IG P&I) approval for Wave's network as a supported method for transfer and delivery of electronic-issued bills of lading. This designation as an approved electronic trading system marks a first for an exclusively decentralized system that is eligible to receive liability coverage under IG P&I's strict rules, paving the way for greater commercial use of Wave.
IG P&I is an international group of 13 individual P&I clubs comprised of members which are collectively accountable for covering approximately 90% of the globe's seaborne trade tonnage. Each individual club operates as a non-profit mutual insurance cooperative that is comprised of shipowners and other charter members which are responsible for contributing to collective insurance coverage for different types of liabilities arising from seaborne traffic and trade. Accordingly, IG P&I's certification of Wave as an approved electronic trading network means that participating members can enjoy all the insurance benefits for all covered liability events from their respective P&I club.
The Wave network operates without a central registry and is capable of issuing and transmitting original electronic unique documents of title on a peer-to-peer basis. By mirroring paper in an entirely digital format, Wave imitates the English COGSA 1992 law to perfectly execute transfers of bills of lading within the network. With the ability to endorse digital documents, affix stamps and signatures, and handle all transactions in a privacy-oriented format, Wave-issued documents deliver all of paper's protections while decreasing risks. P&I approval for Wave's issuance and delivery capabilities means that P&I members are now permitted to use the network for their document needs while remaining eligible for insurance coverage.
According to Wave's General Counsel Boaz Lessem, "We have surpassed a significant milestone today. The IG P&I approval of the Wave legal framework, certifies the technology underpinning the digitization of physical assets in a decentralized network. Wave allows a document itself to be transferred between parties in a way that secures control for only one party at a time, thereby offering the same value proposition as a paper document but in an exclusively digital format. For the first time, Wave grants the same degree of possession and control as holding a paper document in your pocket, allowing a possessor to demonstrate full autonomous control over an electronic document. IG P&I's recognition overcomes a crucial obstacle towards greater commercial adoption across the seaborne trade industry given the gravity and importance of mutual insurance."
Wave Chief Executive Officer Gadi Ruschin concludes, "Shipping plays a critical role in global economic activity, and P&I authorization of Wave's network represents an immense leap forward that we are thrilled to be a part of. One of the biggest hurdles for this process has been proving possession and delivery of a bill of lading. By providing the necessary legal framework for possessing and delivering electronic documents of title along with digital infrastructure to verify and prove the delivery chain of digital documents, Wave has become the first decentralized service to merge stringent legal requirements with the digital age. Commercial users can now enjoy all the benefits and possibilities of paper in a recognized digital format."
About Wave: Wave has developed a decentralized protocol that enables parties to issue and transfer original documents between entities in a peer-to-peer format that champions speed and efficiency while also introducing enhanced security and anonymity to the process. Designed to deliver the same assurances as paper-based original documents, Wave intends to overcome the shortcomings of paper documents by holding a digital mirror to physical processes.