SINGAPORE – Singapore is bullish on the blockchain as the nation adopts the emerging technology for almost every aspect of society; from banking to logistics and shipping.
Despite being a small island nation with a population of only 5.6 million people, it’s an international fintech hub with over 200 banks and innovation labs from international financial institutions including Wells Fargo, UBS, DBS Bank, Citigroup, and MasterCard.
One of South-east Asia’s largest banks, DBS, together with Swiss commodities trader Trafigura and their partners have come together to develop an open-sourced blockchain trade platform to connect trade partners across borders and streamline manual paper-based trade processes to improve trade flows. The platform’s pilot trade of USD20 million worth of iron ore will be shipped from Africa to China this month.
Empowering Seamless Trading
The blockchain platform is designed to be interoperable with existing and future digital trade platforms. Such approach enables companies to continue seamless trading with countries governed by traditional paper-based systems
“DBS is pleased to lead the industry and work with global industry anchors such as Trafigura to co-create digital solutions to make the age-old business of trade finance more efficient, transparent and productive; …our customers will be able to receive their goods at least 50% faster with much less paperwork.”
– Ms Tan Su Shan, head of institutional banking at DBS.
All parties on the blockchain platform will also have the capability to send, receive and act upon trade instructions in real-time, reducing document transit time from 45 to 20 days.