DBS Bank and Trafigura, in collaboration with Infocomm Media Development Authority (IMDA), the International Chamber of Commerce (ICC), Enterprise Singapore and tradetech Perlin, are colalborating to develop an open-sourced blockchain trade platform (ICC TradeFlow platform).
This platform aims to connect trade partners across borders and streamline manual paper-based trade processes to improve trade flows. The platform’s pilot trade of USD20 million worth of iron ore will be shipped from Africa to China this month.
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The platform is designed to be interoperable with existing and future digital trade platforms. This approach will enable companies based in digital harbours like Singapore to continue seamlessly trading with countries governed by traditional paper-based systems.
All parties on the blockchain platform will also have the capability to send, receive and act upon trade instructions in real-time, cutting the document transit time by more than half from 45 to 20 days.
For the future, further improvements will be made to the platform, such as offering trade finance on-the-go, as well as providing background information and credit ratings on trade participants, vessels and couriers to build trust among counterparties.
