Victor Ugochukwu · Dec 14, 2020 . 5min read
Major Singapore banks to introduce Blockchain-based digital trade finance registry
Singapore's 12 biggest banks are developing a digital trade finance registry in Singapore to decrease trade fraud risk and boost transparency.
By Komal Joshi · Oct 7, 2020 . 5min read
Singapore banks have collaborated to create a blockchain-based digital trade finance registry to mitigate the risk of trade fraud and boost transparency. The move by commodity trade financiers in Singapore to build a central database to record trade transactions financed across banks comes after the industry lost billions of dollars due to a spate of defaults and suspected trade fraud cases this year.
The trade registry platform combines blockchain technology to encourage transparency and reduce trade fraud, including duplicate financial transactions. DBS Group and Standard Chartered are leading a group of 12 other Singapore banks. Additionally, it includes Deutsche Bank, ABN AMRO, ANZ, OCBC, ICICI, and UOB.
DLTLedgers to build the Digital Trade Finance registry platform
In a statement on Tuesday, DBS bank declared Singapore’s blockchain startup, DLTLedgers, will create the digital trade registry platform. However, Singapore’s government has set up an investment of more than SG $500 million ($352.49 million). Moreover, it intends to promote local businesses and support digital transformation. The government has concentrated on approving e-payments, e-invoices, and other innovative tools of the digital landscape.
Along with Standard Chartered, the Singapore bank has operated for approximately three months to develop a digital registry proof-of-concept. They believe that the new digital registry sustains an ethical lending practice and advances transparency through commodity trade.
The digital registry proof of concept will be executed as an industry utility to improve Singapore’s trade financing practices, before expanding it globally to cover significant trade corridors at a later stage. Moreover, Enterprise Singapore (ESG) supports the registry’s proof of concept. It is a government agency that supports trade and is endorsed by banks’ main representative body.
Recently, Singapore declared the completion of its multi-currency payment network pilot test. It said that the prototype is a success. The prototype was phase five of Project Ubin, a suite of experiments that focused on central bank digital currencies (CBDC). However, the final phase allows multiple fiat currencies to endure on the same payments network.
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