DBS Makes First Deal on Contour

DBS Makes First Deal on Contour

The deal, between Rio Tinto with a Chinese counterpart, is the first fully integrated paperless trade in the iron ore industry.

DBS has completed its first deal on open trade finance network Contour – a deal between Baosteel and Rio Tinto, which was also supported by Chinsay, essDOCS and issuing bank Standard Chartered, the bank said in a statement on Tuesday.

DBS, which was the advising and nominated bank for the deal, worth nearly 100 million yuan ($14.1 million), said the transaction «signifies an important step within the market for supporting the RMB currency.» 

Rio Tinto, Baosteel, ship agent, shipowner, DBS Bank and Standard Chartered Bank collaborated to draft, approve, sign, issue, transfer and electronically present the electronic bill of loading and upload supporting documents. This «showcases how digital initiatives can effectively enhance the efficiency and security of cross-border trade finance flow, at a time when delivery of physical documentation can be more challenging,» DBS said.

Digitalized Trade Finance

DBS was Singapore’s first lender to join Contour, which provides end-to-end letter of credit settlement to clients and enables digitalized real-time negotiations, post-endorsement sharing with banks and real-time tracking of transactions with a full audit trail. 

«Digitalization of trade presents an opportunity to not only transform the long term relationships with our clients, but also provide the necessary means to bring about sustainable and transformational changes to businesses, large and small, and across the ecosystems they are part of,» John Laurens, DBS Bank group head of global transaction services, said.

Other members of the Singapore-based blockchain trade finance network include BNP Paribas, Bangkok Bank, ING, HSBC, Standard Chartered and Citi Ventures.