Commodities trading giant Trafigura and Singapore’s DBS Bank have revealed their plans to launch an open-sourced blockchain trade platform.
The parties have come together with Infocomm Media Development Authority (IMDA), the International Chamber of Commerce (ICC), Enterprise Singapore and tradetech Perlin to develop an open-sourced blockchain trade platform (ICC TradeFlow platform) to connect trade partners across borders and streamline manual paper-based trade processes to improve trade flows.
Aimed to leverage Singapore’s global trade connectivity, the platform would cut end-to-end trade document transit time by more than half from 45 to 20 days as all parties are able to send, receive and act upon trade instructions in real-time.
Trafigura said that the platform’s pilot trade of USD 20 million worth of iron ore would be shipped from Africa to China this month.
Built on IMDA’s TradeTrust network infrastructure and powered by Perlin’s blockchain technology, the platform is designed to be interoperable with existing and future digital trade platforms. This approach will enable companies based in digital harbours like Singapore to continue seamlessly trading with countries governed by traditional paper-based systems.
“By tapping into each other’s respective expertise in commodities and finance, our customers will be able to receive their goods at least 50 percent faster with much less paperwork. Solutions like these are timely as they meet our customers’ demands for increased transaction speed and optimised financing to promote better cash flow and capital management,” Tan Su Shan, Head of Institutional Banking, DBS Bank, said.
Leveraging the success of this initial pilot, the partners will continue iterating and improving the ICC TradeFlow platform, with a vision for global adoption.
As next steps, further enhancements will be made to the platform, including offering trade finance on-the-go, as well as providing background information and credit ratings on trade participants, vessels and couriers to build trust among counterparties – with the aim of achieving a more seamless trade process.