Standard Chartered‘s Singapore unit has completed its first cross-border trade finance transaction on a blockchain-based platform.
StanChart tapped startup Distributed Ledger Technologies’ platform to complete an agri-business supply chain deal in one day, instead of the normal five to seven, the bank announced. The blockchain technology, which enables parties in the supply chain network to be connected and their trade documents to be generated digitally, streamlines the documentation process and provides security and transparency for participants, said the bank.
StanChart said it intends to expand the blockchain-based supply chain solution to more clients both regionally and globally. The technology involved digitally generating trade documents for Singapore agri-commodities trader Agrocorp International, to get a shipment of chickpeas from the source in Australia to the customer, BSM Global, in Bangladesh. Information that was shared along the supply chain network included data on the origin of commodities and the farming practices that were used.
The bank had previously worked elsewhere on blockchain-based trade finance projects, including a transaction in 2017 for a leading international logistics provider on the TradeIX platform, and a smart guarantees pilot in 2018 with Siemens Financial Services and TradeIX.