Blockchain-based commodity trading platform launched in Singapore

It has reached a turnover of US$200m covering markets like China, Switzerland, and Australia.

Commodities Intelligence Centre (CIC) launched Singapore’s first physical commodity B2B e-trading platform that is built on blockchain technology. It allows commodity traders to access services such as transaction matching, one-click customs clearance, supply chain financing and payment term options, and pooling of resources for both buyers and sellers.

According to an announcement, CIC trades in a portfolio of products including Oil & Petroleum, Chemical & Plastic, Ferrous & Non-Ferrous Metals, and Agriculture Products. Since its trial operation in July, CIC has nearly reached a turnover of US$200m - covering markets including China, Switzerland, Australia, India, Malaysia, and other countries within Asia.

CIC added that the platform has enhanced security across trade-related documents, from Certificates of Origin to Commercial Invoices. “This enhances the transparency and trust between shippers, freight-forwarders and users, whilst providing a strategic edge to businesses trading on the platform,” it said.

Eugene Wong, chairman of CrimsonLogic and GeTS, said at the launch of CIC, “Importantly, CIC can revolutionize commodity trading by attracting more buyers and sellers globally to come on board, with the potential to lower and even stabilise the cost of commodities.”

As part of its launch ceremony, CIC also said that it signed a Memorandum of Understanding (MOU) with Japanese conglomerate Marubeni Corporation to unlock commodities trade opportunities for Supply Chain Finance. Marubeni will integrate the CIC to facilitate more payment term options to bridge buyers and sellers globally with greater ease and efficiency.

The platform was launched together with its key industry partners ZALL SMARTCOMM (ZALL), GeTS (Global eTrade Services) Asia Pte Ltd., a subsidiary of CrimsonLogic (the leading provider of eGovernment products and services, based in Singapore), and Singapore Exchange Limited (SGX). Enterprise Singapore also played a role in bringing the three industry partners, CIC added.