The Singapore unit of London-headquartered international banking and money services firm standard chartered has completed its 1st blockchain-powered trade finance deal. The news was reported by Singapore’s English-language financial daily The Business Times on January. 24.
The bank reported that the blockchain solution — developed by blockchain startup Distributed Ledger Technologies — had enabled an agri-business supply chain deal to be completed within one day, rather than the standard 5 to 7 days.
As of 2017, trade finance transactions were priced over $9 trillion, and also the business remains heavily dependent on legacy systems and cumbersome paper-based systems.
According to a 2017 annual report, StanChart has over $600 billion in assets on their record.
StanChart underscored these days that the blockchain solution had streamlined the conversion and exchange of trade documents between parties within the supply chain network — providing not only a lot of potency, however additionally redoubled security and transparency.
As antecedently reported, Stanchart is one among a dozen major banks — among them HSBC and BNP Paribas — to possess conjointly developed and launched a blockchain trade finance platform dubbed eTrade Connect last fall.
Using blockchain to modify trade documents and change multiple trade finance processes is widely expected to mitigate the risks of fraud in letters of credit (LoC) and alternative relevant documents within the industry.
Last May, HSBC completed what it had been reported to be the world’s 1st ever trade finance dealings powered by blockchain: a LoC for food and agricultural giant Cargill, the United States’ largest private company by revenue.
Beyond trade finance, StanChart has additionally been developing blockchain solutions for multiple different processes; in October, the bank disclosed it had been engaged on a pilot for bank guarantees that might be underpinned by blockchain association R3’s Corda blockchain technology.
Last month, StanChart partnered with Brazil’s largest private bank, Itau Unibanco, to make a blockchain-based platform for small loans.
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