14 Singapore banks will jointly develop a digital system on the blockchain for recording trade Finance transactions. The system should increase transparency and reduce the risk of fraud.
The project leaders were DBS Bank and the Singapore division of Standard Chartered. It was also joined by local departments of ABN AMRO, ANZ, Deutsche Bank and others. The DLTLedgers Startup will develop the platform.
DBS Bank worked with Standard Chartered for three months to develop a proof of concept for the digital register of trade Finance transactions. In a statement, DBS Bank said:
“the Platform should become an industry-leading tool and serve as a Central database on trade Finance transactions for banks operating in Singapore. It will reduce the risk of duplicating requests for financing the same delivery in different banks, as well as increase trust between banks and trading companies.”
At the moment, banks do not have information that the company trying to get a loan has already received funds from another Bank, or is trying to take money for one project from several banks at once.
In early September, DLTLedger CEO Samir Neji said that in an economic crisis, blockchain will help protect banks from scandals in the trade Finance industry.