The Asian banking giant DBS and the multinational Trafigura Group use the blockchain to facilitate global trade.
Together with the Singapore government and the International Chamber of Commerce, these companies are seeking to reduce the number of paper processes involved in global trade. The distributed general led technology company, Perlin, provides the background of the blockchain to build the open source platform, named ICC TradeFlow.
DBS says the new platform will connect partners from different countries, reducing the transit time of end-to-end documents from 45 days to just 20. A $ 20 million trade in iron ore from the United States. Africa to China is expected to be the first transaction processed, according to a press release.
The ICC TradeFlow platform relies on the Trade Trust network infrastructure provided by the Infocomm Media Development Authority (IMDA), which is a statutory board of the Ministry of Communications and Information Information. Singapore.
Partners plan to make further improvements to the platform as more countries join the new trade finance system. According to the statement, participants say they can establish a more reliable relationship between counterparties, adding more general information, such as credit ratings of trade participants, ships and smugglers.
The partnership could spur new innovations that could strengthen Singapore's position as a commodity exchange hub, said Satvinder Singh, Deputy Managing Director of Enterprise Singapore, an agency of the Ministry of Trade and Industry. from the country.
Trade finance has been one of the frontiers of business bloc adoption. The foreign trade finance chain Marco Polo has partnered with more than 20 global banks, including Bank of America, ING and BNP Paribas. It tested its first trade agreement between Germany and Russia in October.
A large number of Chinese state banks have also launched their own blockchain trade financing platform to facilitate short-term financing between exporting companies and financial institutions, and the Construction Bank, one of the top four The country's commercial banks reorganized its blockchain platform with new factoring capabilities, with the platform's trading volume surpassing the global $ 53 billion since its launch in April 2018.
Trafigura has been involved in the blockchain business since 2017, when it participated in the development of a crude oil trade financing platform alongside IBM, Natixis and Hyperledger.
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