Banking giant DBS and the Singapore-based commodity trading firm, Trafigura Group, are launching a Blockchain global trade platform. DBS Bank Partnered With Trafigura Group To Promote Blockchain Global Trade.
The firms have been planning to decrease paper-based methods used in global trading. Perlin, the DLT company, is helping to build the ICC TradeFlow open-source Blockchain platform.
The Blockchain platform would associate partners and reduce document movement time from 45 days to 20 days. As per a previous press release, a trade of iron ore worth $20 million would be the first processed transaction.
The partners would include more features to the platform when more nations participate in the latest trade system. They can then create a more stable relationship between the parties.
The partnership would promote transformation that can make Singapore continue being the principal commodity trade centre.
Trade finance has been a frontier in the adoption of business Blockchain technology. Marco Polo, a trade financing initiative, collaborated with more than 20 international banks. The global banks include ING Group, Bank of America and BNP Paribas. Marco Polo tested its first trade between Russia and Germany last month.
Many Chinese state-owned commercial banks also introduced their Blockchain-based trade financing platform. The Construction Bank in China modernized its Blockchain network with new finance factoring. The platform recorded a trading volume of over $53 billion since its launch in 2018.
Trafigura Group has been associated with the Blockchain technology space since 2017. At the time it took part in the creation of a crude oil Blockchain-based trade financing platform with firms like IBM, Hyperledger and Natixis.