In a development that could eventually have far-reaching implications for businesses, IFFCO Singapore and Standard Chartered completed a palm oil trade using the blockchain platforms powered by dltledgers. The deal in question was not only about palm oil but also its extracts. However, the more important thing to remember is that the deal represents a landmark moment for global business and shows that blockchain can be used quite effectively to speed up international trade. Palm oil and extracts constitute an extremely important part of IFFCO’s business, and in one year, the company shims as much as $100 million worth of those products to the Middle East.
A transaction of this nature generally takes around ten business days to complete, and a lot of paperwork is involved in the process as well. However, by using dltledgers, IFFCO
, and Standard Chartered were able to complete the whole transaction within a space of a mere three hours. More often than not, the entire transaction can take as many as 50 documents and also needs a range of parties to be involved. However, dltledgers provide the sort of security that can speed up trade significantly.Standard Chartered’s global head of documentary trade, Samuel Mathew, spoke about the transaction and how the industry is reacting to blockchain technology. He said,
We are seeing a strong adoption by corporate clients like ISPL for dltledgers’ blockchain platform for cross-border trade. This will surely reduce fraud and related risk and build cross-border interconnectivity.
Over the years, Standard Chartered has become one of the most tech-savvy and has embraced modern technology like blockchain in a big way. Hence it is no surprise that it has been involved in this particular transaction with IFFCO.