DBS Bank said it is now a partner on a newly launched blockchain trade platform developed by a unit of China's Ant Group.
Called Trusple, the platform uses blockchain technology to facilitate trade and trade financing.
DBS yesterday said it is the first Asian bank partner on the platform. The other partners are BNP Paribas, Citibank, Deutsche Bank and Standard Chartered Bank.
Trusple hopes to serve as a platform for distributors and suppliers to trade and access trade financing digitally in real time.
When a buyer or seller generates a digital trade order, it will be automatically recorded on the blockchain. This enhances transparency in complex supply chains, fostering greater trust between parties that may not have interacted before, DBS said.
The platform aims to facilitate greater adoption of digital trade processes among firms, especially small and medium-sized enterprises that face many pain points when it comes to international cross-border trade, it added.
DBS and other member banks will offer payment guarantees for all goods traded on the platform. The financing bank will automatically dispatch payment to the seller once the buyer digitally acknowledges the receipt of goods on Trusple.
This mitigates the risk of late payments and allows suppliers to enjoy greater predictability of cash flows, enabling them to better optimise their working capital to grow their business.
THE BUSINESS TIMES