The Singapore-based leading banking entity DBS & Standard Chartered have successfully completed the proof-of-concept of their blockchain trade finance platform referred to the Trade Finance Registry.
The two entities developed the PoC together with 12 other banks on top of the blockchain platform of Singapore-headquartered firm ‘dltledgers’.
While explaining, dltledgers revealed that the banks involved within the project now shall launch the platform for commercial use by central banks around the globe.
While the platform will primarily be employed by the Monetary Authority of Singapore, the entities involved within the project also decide to propose it to central banks from the U.S., U.K., Thailand, United Arab Emirates, India, Hongkong, Qatar as well as Indonesia.
Backed by Enterprise Singapore – a government enterprise under the Ministry of Trade & Industry – and therefore the Association of Banks in Singapore, the trade finance platform is predicted to assist banks to fight fraud in lending as well as commodity trading.
In line with dltledgers founder Samir Neji, the platform uses the firm’s blockchain-based TradeDoc Validation Registry to assist banks to detect fraud in real-time apps.
DBS & Standard Chartered revealed within an official statement that the pilot test helped reduce the probabilities of duplicate financing from different bank lenders for an equivalent trade inventory. This, they added, will cause greater trust & confidence among banks and traders.
This is solely the newest effort by DBS in employing blockchain to digitize trade finance. Just 4 months earlier, the bank joined the blockchain network Contour, built over R3’s Corda, so as to modernize processes for the settlement of letters of credit.