Monetary Authority of Singapore Introduced Digital Trade Financing Pilot With IMDA, & FSRA
As per the latest news, Singapore’s Infocomm Media Development Authority (IMDA), the Monetary Authority of Singapore (MAS), and the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) recently declared successful completion of a cross-border digital trade financing pilot.
This aforesaid association also includes DBS Bank, Emirates NBD, and Standard Chartered as commercial partners as per the announcement.
The cross-border digital trade financing pilot utilized IMDA’s TradeTrust framework to further transfer digital records between the jurisdictions that have considered the United Nations Commission on International Trade Law's (UNCITRAL) Model Law on Electronic Transferable Records (MLETR), as per the reports.
Lew Chuen Hong, chief executive of IMDA explained in a statement, “The pilot represents how TradeTrust Digital Utility can accelerate the digitization of trade finance procedures. We have completed this by giving lawful conviction to electronic transferable records like eBLs through MLETR”
On the other hand, Leong Sing Chiong, deputy managing director of markets and development at MAS explained, “Singapore strives to gear up the digitization of trade finance to encourage more trust, efficiency, and cost-effectiveness in financing regional as well as international trade. With the help of this pilot, we expect to witness a more extensive adoption of digital trade finance in Singapore and the region.”
The association is also a part of the international trade movement by the G7 economies to consider electronic transferable records for international trade.
Emmanuel Givanakis, CEO of the FSRA stated, “Trade Finance is an essential way for continuing the development and growth of the global economy. Being an international financial center, ADGM is pleased to operate with other MLETR-compliant jurisdictions with an agenda to provide a solid and sufficient regulatory and technical framework that assists financial institutions in efficiently catering to their corporate clients’ requirements. We strive for further growth and operationalization of digital trade finance in the ADGM and internationally.”
In August, Indian B2B digital payments company PayMate associated with Visa and Citi to automate payables based in the UAE, through which the organization will try to extend its B2B payments platform, utilized by over 105,000 Indian companies, into central and Eastern Europe, Middle East and Africa.