Standard Chartered together with the Singapore-based multinational banking entity DBS announced that they have completed the proof-of-concept (PoC) of the Trade Finance Registry platform. This Registry is a blockchain trade finance platform that targets central banks throughout the world.
The two firms created the PoC in conjunction with 12 other banks on top of the blockchain platform of Singapore-headquartered company dltledgers. Dltledgers told reporters that the banks that took part in the process of creating this project now intend to launch the platform for commercial use by many central banks around the world.
Although this blockchain platform is scheduled to first be used by the Monetary Authority of Singapore, the people and entities involved in this project also plan to propose it to central banks from the UK, US, UAE, Thailand, Hong Kong, India, Indonesia, and Qatar.
Backed by the Association of Banks in Singapore and Enterprise Singapore — a government enterprise under the Ministry of Trade and Industry, the trade finance platform is scheduled and designed to help banks combat fraud in lending and commodity trade. According to Samir Neji, dltledgers founder, the platform uses the firm’s blockchain-based TradeDoc Validation Registry to assist banks in detecting fraud in real-time.
Standard Chartered and DBS commented in a statement that the pilot test went a long way to help minimize the chances of duplicate financing from various bank lenders for the same trade inventory. This development will result in greater trust and confidence among traders and banks.
It is only the latest effort by DBS in using blockchain technology to digitize trade finance. Just four months ago, the bank also joined the Contour blockchain network, built over R3’s Corda, to modernize processes for the settlement of letters of credit.
