DBS is the latest bank to announce a blockchain-related transaction. The bank used Ant Group’s blockchain technology with its first trade finance transaction on the Trusple blockchain.
The first trade finance transaction by the Singapore-based bank was for around $40,000 and was for iQuartz, one of the most popular brands in Singapore.The bank has been actively exploring blockchain trade finance, and in 2020 joined the Contour trade platform to digitize and streamline letter of credit processes.
Ant Group’s Trusple blockchain works by generating a smart contract once a buyer and a seller upload a trading order. As the order is executed, the smart contract is updated with relevant purchase information. This automates the payment process, and speeds up otherwise lengthy manual processes.
Joyce Tee, DBS Group head of SME Banking at DBS commented on the complex trade processes:
“By leveraging emerging technologies such as blockchain, DBS is lowering the barriers for SMEs to participate in Asia’s post-pandemic economic revival as cross-border trade activity in the region picks up.”
DBS has been moving into blockchain technology over the past year, trialing the Marco Polo blockchain platform, as well as being the first to trial ICC’s TradeFlow platform, and go public as a member of dltledgers.
While efficiency is crucial in banking, complex trade services have stopped some SME’s from participating in cross-border trade. The move from DBS builds on its trade finance initiative,Rong-E-Lian which actively targets Chinese SME’s that often go overlooked by blockchain solution platforms.
DBS is currently live for the Singapore – China trade corridor.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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