According to reports on The Business Times, Standard Chartered’s Singapore unit has completed their first-ever cross-border trade finance deal over the blockchain technology.
Using the platform provided by the startup Distributed Ledger Technologies, the deal was completed within 24 hours, instead of the usual 5 to 7 days.
The agri-business supply chain deal involved digitally generating trade documents between agri-commodities firm AgroCorp International to BSM Global. The documents contained information to get a shipment of chickpeas from Australia to Bangladesh. It included data on the origin of commodities and the farming practices that were used.
The bank said that the blockchain technology enables parties in the supply chain network to be connected and trade documents digitally, thereby, streamlining the documentation process while providing security and transparency between the partners.
Ujjwal Jain, the Head of Trade said:
“[The use of blockchain-based platforms] enables the bank to support our clients’ entire supply chain and provide seamless trade financing within a day”…”This helps free up cash flow and working capital, which our clients and their supply chain can reinvest into their business.”
He stated that the process is a win-win situation as the transparency builds trust and loyalty between both parties while promoting cost-efficient products and services.
About Standard Chartered:
Standard Chartered is a multinational financial firm headquartered in London, England and has branches in more than 70 countries worldwide. This is not the first time they have been involved in leveraging blockchain technology for trade finance. In September 2017, they worked with TradeIX, the world’s first trade finance platform on the blockchain technology.
Image Courtesy: Wikimedia
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