CIMB Singapore and iTrust announced that they have successfully completed their first structured trade financing transaction on iTrust’s Blockchain and Internet of Things (IoT) platform.
The transaction involves the financing of dairy products imported into China and is expected to generate transactions up to $100 million over a year, CIMB Bank said in a media statement last Thursday. iTrust provides secured real-time visibility of the cargo in transit and in the warehouse using blockchain-based IoT. On average, the average trade size on the platform would be about US$1 million, with each trade on the platform to be done by a single borrower.
Documents on Blockchain
iTrust provides secured real-time tracking of the cargo in transit and in the warehouse using blockchain-based technology. All data and documents from the transaction are placed on a distributed ledger for provenance and immutability. The aim with using blockchain technology to secure the documents and cargo is to reduce risks associated with commodity trade financing, CIMB said.
“This blockchain trade financing with iTrust will present an opportunity for CIMB Singapore to support our customers more efficiently and cost-effectively. It mitigates fraud risk, and alerts us to any unauthorised movement of the financed cargo.”
– CEO of CIMB Bank, Singapore branch
This is not the first time CIMB is implementing blockchain technology. Last year in November, CIMB Group Holdings, a division of the CIMB Group, signed up with Ripple to use XCurrent for its cross-border payment services.
“We believe that the day will come whereby all lenders and borrowers would demand to have a secured real-time view of their cargo under financing on a secure and immutable blockchain platform like iTrust.”
– CEO and co-founder of iTrust.