Singapore, SINGAPORE – The Singaporean unit of multinational banking and financial services giant Standard Chartered has completed its first blockchain-based cross-border trade finance transaction, Business Times reported.
In an announcement, the bank said that it leveraged a blockchain platform developed by Distributed Ledger Technologies for an agri-business supply chain deal. Using the platform, it was able to complete the deal in one day, instead of the usual five to seven days, it said.
The project involved digitally generating trade documents for Agrocorp International, a Singaporean agri-commodities trader, for a shipment of chickpeas from Australia to the customer, BSM Global, in Bangladesh. The platform allowed sharing information along the supply chain network, right from the origin of the commodities. With the help of blockchain tech, the platform will digitize trade documents, automating several trade finance procedures likely as expected to mitigate their relevant fraud risks in terms of the letter of credit (LoC) together with other relative documents.
Singapore is the largest commodities trading hub in Asia, housing over 400 global, regional, and local commodities players across the value chain. As trade with Asia grows, and with more trades being conducted during the Asian time zone, Singapore’s status as a commodities trading hub will continue to strengthen and solidify. Recognising the importance of blockchain technology in transforming trade finance, Standard Chartered plans to extend this solution to more clients in the region and globally.