Asian banking giant DBS and multinational commodity trading company Trafigura Group intercepts blockchain to facilitate global trade.
Along with the Singapore government and the Chamber of Commerce International, these companies are looking to reduce the amount of paper-based processes involved in global trade. Perlin books distributed technology company providing background blockchain to build an open-source platform, dubbed the ICC TradeFlow.
DBS claims the new platform will connect partners from various countries, reducing end-to-end document transit time of 45 days to only 20. A $ 20 million in trading of iron ore from Africa to China is expected to become the first transaction is processed, according to a press release.
TradeFlow ICC Trade Trust Platform based network infrastructure provided by the Infocomm Media Development Authority (IMDA), which is a legal board under the Singapore Ministry of Communication and Information.
The partners plan to add more enhancements to the platform as more countries join the new trade finance system. According to the release, the participants claim they can build a trustworthy relationship between the counterparty, adding background information such as credit ratings in the trade participants, boats and couriers.
This partnership can foster new innovations that can strengthen Singapore’s position as the leading commodity trading hub, said Satvinder Singh, assistant CEO of Enterprise Singapore, an agency under the Department of Trade and Industry in the country.
Trade finance has become one of the borders to be adopted blockchain company. Trade finance blockchain Marco Polo has partnered with more than 20 global banks, including Bank of America, ING and BNP Paribas. It has been piloted first trading arrangement between Germany and Russia in October.
A slew of state-owned banks China has also launched a platform of trade finance blockchain themselves to facilitate short-term financing between export companies and financial institutions, and the Construction Bank, one of the four major commercial banks in the country, has been revamped platform blockchain its ability factoring as a new platform trading volume exceeded $ 53 billion overall since the April 2018 launch.
Trafigura itself has been involved in space blockchain since 2017, when it participated in the development of trade finance platform along with IBM’s crude oil, Natixis and Hyperledger.
Singapore image via Shutterstock