DBS and Standard Chartered Launch Blockchain Trade Finance Platform to Curb Trade Finance Fraud
Singapore-based multinational banking entity DBS and Standard Chartered are about to change the way banking is done. These two entities have completed proof of concept for their blockchain trade finance platform and have named it as the ‘Trade Finance Registry.’
These two institutions are focused on developing a more fraud-proof banking environment with their PoC in collaboration. Besides these two banks, they have merged with 12 other banks that are currently placed at the top level of blockchain technology and are using the platform for the same.
Handled by Singapore-headquartered company Dltledgers, the company has come in interaction with Cointelegraph. As per their communication, the banks involved in the project are gearing up to launch the platform for commercial use by central banks around the globe.
The upcoming platform which will first be used by the Monetary Authority of Singapore will be made available to the rest of the world afterwards. The 12 major entities which are involved in creating a seamless banking experience also plan to propose it to central banks from the United Kingdon, United States, India, Thailand, the United Arab Emirates, Hong Kong, Indonesia, and Qatar.
Backed by Enterprise Singapore which is an established government enterprise that comes under the Ministry of Trade and Industry, this banking association is also in partnership with the Association of Banks in Singapore. Their newly developed trade finance platform will help banks to fight the frauds that have been on the rise over a global scale recently.
According to Dltledgers founder Samir Neji, “the platform uses the company's blockchain-based TradeDoc Validation Registry to help banks detect fraud in real time.”
Apart from their announcements over the highly secure banking solution, DBS and Standard Chartered said in a statement that, “the pilot test helped reduce the chances of duplicate financing from different bank lenders for the same trade inventory. This is why we have added a solution that will lead to greater trust and confidence among banks and traders.”
This is one of the latest ventures by DBS in implementing blockchain technology to digitize trade finance. Lastly, it was only four months ago when these leading entities came in terms to work as a bank that joined the blockchain network Contour, built over R3’s Corda, in order to modernize processes for the settlement of letters of credit.