DBS and Standard chartered are planning to launch a trade finance platform based on a blockchain platform to register transactions.
This operation will run under the name Trade Finance Registry(TFR). It will use a Proof-of-Concept(PoC) provided by Dltledgers.
The two industries developed the PoC in collaboration with 12 other banks on top of the Dltledger blockchain platform.
Their aim is to provide a secure central database for the banking industry to access trade transactions and provide an industrial utility to banks across Singapore.
Banks today are unable to conduct validations across a single consumer entity without any knowledge of what other banks may have financed or undertaken as collateral.
The TFR system alleviates any chances of duplicity in financing from different bank lenders for the same trade inventory, establishing trust between banks and traders.
According to Dltledgers founder Samir Neji, the platform utilizes a blockchain-based TradeDoc Validation Registry to help banks detect fraud in real-time.
Although the monetary authorities of Singapore will evaluate it first.
Also, organizations involved are set to pitch this instrument to the Central Banks of the UK, US, India, Qatar, UAE, Hong Kong, and Indonesia.
DBS and Standard Chartered plan to roll it out globally once its run by the association of banks to create an industrial utility.
The Framework Operates As Follows
- Each bank has its own blockchain node on Dltledgers platform.
- The blockchain stores the hashes of certain documents, instead of trade details.
- The banks’ own node stores the hashes.
- This helps in validation of the document whether the documents are financed, accepted by a bank for processing, or not financed
- This validation helps in processing the request accordingly