Blockchain Trade Finance Deal Completed By Standard Chartered In Singapore

Announcements, Blockchain, Innovation | January 25, 2019 By:

Multinational banking and financial services firm Standard Chartered has completed its first blockchain-based cross-border trade finance transaction in Singapore.

The transaction, conducted on a blockchain platform developed by Distributed Ledger Technologies, involved digitally generating trade documents for Singaporean agri-commodities trader Agrocorp International for a shipment of chickpeas from Australia to the customer, BSM Global, in Bangladesh. The bank reportedly succeeded in completing the transaction within 24 hours, compared to the normal five to seven days period. The blockchain platform also provided BSM Global with information including the origin of commodities purchased and farming practices used.

In a statement, Standard Chartered said that blockchain’s ability to optimize and streamline document and money transfer between banks and investors allows them to reduce the time to complete a trade finance transaction, and ensure security and transparency for participants.

“Blockchain enables the bank to support our clients’ entire supply chain and provide seamless trade financing within a day,” said Ujjwal Jain, head of trade for the Singapore transaction banking business. “This helps free up cash flow and working capital, which our clients and their supply chain can reinvest into their business. The transparency of the whole process also helps build trust and loyalty across the supply chain to promote more cost-efficient products and services. This is a win-win for all parties.”

The trade finance transaction in Singapore is part of the bank’s wider initiative to leverage blockchain technology to promote trade activities. In 2016, the bank completed its first real-time cross-border payment using Ripple’s blockchain technology. Last year, it collaborated with Siemens Financial Services and blockchain startup TradeIX to create an end-to-end blockchain-based smart guarantees proposition in trade finance.