14 Singapore banks will jointly develop a blockchain-based digital system to record trade finance transactions. The system should increase transparency and reduce the risks of fraud.
Banks DBS Bank and Singapore branch of Standard Chartered became the project leaders. It was also joined by the local branches of ABN AMRO, ANZ, Deutsche Bank and others. The platform will be developed by the startup DLTLedgers.
DBS Bank worked with Standard Chartered to develop a proof of concept for the digital ledger of trade finance transactions for three months. DBS Bank said in a statement:
“The platform should become an industry-specific tool and serve as a central database of trade finance transactions for banks operating in Singapore. It will reduce the risk of duplication of requests for financing the same supply in different banks, and also increase trust between banks and trading companies. “
At the moment, banks have no information that a 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 blockchain would help protect banks from scandals in the trade finance industry amid the economic crisis.
