The Singaporean branch of CIMB, one of the largest Asian investment banks, has completed a blockchain-based trade financing transaction on iTrust’s IoT, believed to help minimize the risks in commodity trade financing.
According to Yahoo Singapore, the CIMB branch says the system will also facilitate lending to the bank’s customers, with real-time monitoring of the cargo data.
The blockchain-based IoT system reportedly secures access to and the integrity of digital documents stored on a distributed ledger.
CEO of CIMB Singapore Mak Lye Mun said that with the blockchain-powered platform, the bank can provide trade finance services more efficiently and at reduced cost. It can also mitigate the risk of fraud by reporting any suspicious movement of the financed cargo.
The bank plans to expand its collaboration with iTrust, a local trade financing company, to develop digital applications in other markets.
iTrust utilizes blockchain, IoT, and smart contract technologies to manage risks and improve supply chain visibility, allowing both lenders and borrowers to assess and mitigate risks efficiently.
The company has positioned itself as a technology facilitator, with the goal to open up new opportunities in the trade financing market.
Located in 16 countries worldwide with 36,000 employees, CIMB is the 5th largest banking group in Southeast Asia and one of the biggest Islamic banks in the world. The bank’s market capitalization is worth around US$48 billion.
SpeedSend, a remittance service of CIMB Group Holdings, is powered by Ripple’s XCurrent product, following an agreement by CIMB Group Holdings to join Ripple’s cross-border payments network.
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