SINGAPORE (BLOOMBERG) - DBS Group Holdings is working with Standard Chartered on developing distributed ledger technology for trade finance in Singapore.

The banks have completed tests on the technology and will start collaborating with other companies next year, Mr Shirish Wadivkar, head of payables, receivables & flow FX at Standard Chartered, and Ms Lum Yin Fong, DBS's global head of client management and implementation, said on a call with Bloomberg on Thursday (Dec 17).

Estimates on development costs are not available yet, they said.

In pursuing the technology that underpins cryptocurrencies, including bitcoin, Standard Chartered and DBS are developing a new approach that could transform the trade finance business by speeding up banking transactions, while cutting costs and boosting transparency. Banks are seeking ways to bolster trade-finance operations in Asia that have been hobbled by slowing economic growth in the region and slumping commodity prices.