DBS and Trafigura to launch open-source blockchain trade platform

It will cut trade document transit time from 45 to 20 days.

DBS Bank and energy company Trafigura, in collaboration with Infocomm Media Development Authority (IMDA), the International Chamber of Commerce (ICC), Enterprise Singapore and tradetech Perlin, has partnered to develop an open-source blockchain trade platform that will streamline manual paper-based trade processes and halve trade document transit time from 45 to 20 days, according to an announcement.

The platform’s pilot trade of $27.16m (US$20m) worth of iron ore will be shipped from Africa to China this month, the release added.

ICC TradeFlow platform is built on IMDA’s TradeTrust network infrastructure and powered by Perlin’s blockchain technology. It will reportedly enable companies based in digital harbours like Singapore to seamlessly trade with countries governed by traditional paper-based systems. All parties on the blockchain platform are also able to send, receive and act upon trade instructions in real-time, cutting the end-to-end trade document transit time by more than half.

Further enhancements will be made to the ICC TradeFlow platform, which include offering trade finance on-the-go as well as providing background information and credit ratings on trade participants, vessels and couriers.

IMDA is spearheading the development of a globally trusted network, TradeTrust, for digital trade documentation exchange, and is working with various government agencies, including the Maritime and Port Authority of Singapore, Enterprise Singapore, Singapore Customs, Government Technology Agency, and industry partners such as Singapore Shipping Association.

The planned network aims to reduce inefficiencies and complexities of cross-border trade arising from the current usage of paper-based documentation, such as bills of lading, according to the announcement. This, in turn, will reportedly reduce operating costs for businesses, lowers risk of fraud, and promotes more growth in trade.