DBS is the biggest bank in Southeast Asia. The bank has collaborated with Trafigura and its partners to start a blockchain trading platform in Singapore. According to the bank, the purpose is to reduce paperwork and improve trade flows.
The platform will carry out its first trade, which is going to be a cargo of iron ore valued at 20 million Dollars. The cargo is shipping from Africa to China this month.
They developed the platform on the network infrastructure of the Infocomm Media Development Authority of Singapore as well as the blockchain technology of Perlin.
According to DBS, one of the partners of the project is the International Chamber of Commerce. Tan Su of DBS maintained that the platform would help their customers in collecting their goods at least 50% faster with much less paperwork. Sending, receiving and acting upon trade instructions in real-time will be possible for every party on the blockchain platform.
The platform will be improved to include trade finance on-the-go, offering background details as well as trade participants’ credit ratings, vessels, and couriers towards building trust among counter parties.
Featured image courtesy of Reuters.