Standard Chartered Bank announced the completion of its first blockchain-enabled cross-border trade transaction in Singapore for Agrocorp International and its extended supply chain network.

British bank Standard Chartered in Singapore completed the trade finance transaction on Distributed Ledger Technologies (DLT) blockchain technology platform for Agrocorp to facilitate the trading of agricultural products within the agri-commodity company’s supply chain from Australia to Bangladesh, acccording to a media release on Thursday.

This blockchain technology, which enables parties in the supply chain network to be connected and their trade documents to be generated digitally, streamlines the documentation process and provides security and transparency for involved participants. With Standard Chartered’s trade finance capabilities and global footprint, the bank successfully completed the transaction within 24 hours, significantly reducing the time it could have taken (between 5 to 7 days).

Singapore as Trading Hub

The blockchain platform also provides Agrocorp’s customer BSM Global, a large-scale trader and distributor in Bangladesh, with information including the origin of commodities purchased and farming practices used. Such capabilities enable companies to source from farmers according to their own sustainability principles.

Singapore is the largest commodities trading hub in Asia, housing over 400 global, regional, and local commodities players across the value chain. As trade with Asia grows, and with more trades being conducted during the Asian time zone, Singapore’s status as a commodities trading hub will continue to strengthen and solidify. Recognising the importance of blockchain technology in transforming trade finance, Standard Chartered plans to extend this solution to more clients in the region and globally.

Wider Initiative

This transaction is part of Standard Chartered Bank’s wider initiative to leverage blockchain technology to promote trade activities.

  • In September 2017, the bank announced the successful completion of the first trade finance transaction for a leading international logistics provider on the TradeIX platform, the world’s first trade finance platform powered by distributed ledger technology.
  • In August 2018, the bank collaborated with Siemens Financial Services, the financing arm of Siemens, and TradeIX, to carry out an industry-first client pilot to create an end-to-end blockchain-based smart guarantees proposition in trade finance.