DBS and Trafigura, a Swiss commodities trader, have launched a blockchain trading platform in Singapore with partners.
The blockchain platform is aimed at improving trade flows and reducing paperwork, according to DBS.
The first trade to be carried out on the ICC Tradeflow platform will be a cargo of iron ore from Africa to China, with a value of USD20 million.
The platform is built on Perlin's blockchain technology, combined with Infocomm Media Development Authority's network infrastructure, according to a report by Reuters. DBS have also stated that the International Chamber of Commerce is also a partner in this project.
Tan Su Shan, Head of Institutional Banking at DBS, has said that “By tapping into each other's respective expertise in commodities and finance, our customers will be able to receive their goods at least 50% faster with much less paperwork.”
All parties on the blockchain platform will also be able to send, receive and act upon trade instructions in real time. This will cut the end-to-end trade document transit time to around 20 days, where it was previously 45.
Future enhancements, such as trade finance on-the-go, providing background information and credit ratings on trade participants, vessels and couriers to build trust among counterparties, will be added to the platform in the future, according to DBS.
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