The significant financial organization of Singapore, DBS, has collaborated with commodity trader Trafigura of Switzerland. The partnership aims to create a blockchain platform for the transaction so they can have minimal paper works and improved commerce.
The first trade on the ICC trading platform will be a cargo of iron ore worth 20 million dollars from Africa to China, as per the announcement made by DBS.
The platform is built in collaboration with the IMDA of Singapore, International ICC, and trade tech Perlin. The Worldwide Chamber of Commerce is also an associate of this group.
As per the reports, the platform will help the companies located in digital harbors to trade with companies working traditionally. All the participants of the platform can send and accept trade orders on actual time. Thus, it will reduce the transit time for the trade documents by half from 45 to 20 days.
In the future, some more features will be added to the platform so that trade finance can be offered at any time. Some other capabilities will also be added to get background data and credit scores of the participants and the vessels.
As per the partners, the platform is destined to overcome the present-day inefficiencies of cross border trade because of the paper-based documentation. Thus, it will reduce business cost and fraud risk and thereby help in trade promotion.
Previously, DBS has also united with Agrocorp, the agriculture commodity company, to build a blockchain platform that will connect 4,500 Australian farmers with restaurants, customers, and supermarkets.