Singapore trade blockchain integrates SME financing solution
Yesterday, Singapore-based Global eTrade Services (GeTS) declared a partnership with blockchain firm Shuttle One to combine the former’s financing and supply chain platform with Shuttle One’s payments solution ecosystem. GeTS is the partly government-owned logistics and supply chain management firm that developed the CALISTA platform for digital cross border trade. The solution already utilizes the GeTS OTB (Open Trade Blockchain), enabling stakeholders to save and share trade documents securely.
Meantime, Shuttle One has produced a blockchain-based cross-border remittance platform. It offers reduced transfer fees of 3% with near-instant settlement. It alleges to have 1.2 million eCommerce merchants and 11,000 SMEs utilizing its platform. Based in Singapore, it has a vital user base in Indonesia.
GeTS is combining this solution with its CALISTA Finance offering. “We are happy to have Shuttle One onboard CALISTA, to integrate the digital and physical aspects of trade financing on a single platform. This partnership will facilitate our customers to have more convenient access to trade financing,” said Chong Kok Keong, CEO of GeTS in a statement.
In trade finance, SMEs strive to obtain funding because of the difficulty of assessing their credit risk profile. Utilizing Shuttle One, users of the CALISTA platform must offer invoices and records of previous transactions to show credit history. Data analytics tools will then be utilized for credit assessment based on real-time trade and market insights.
The solution will then automatically draft a loan agreement, and the applicant can obtain the money within 24 hours. Shuttle One and GeTS have already onboarded financiers on the platform and have financed about 30 transactions in the commodities and agri-food sector.
Established in 2016, GeTS is a CrimsonLogic subsidiary, which is 55% owned by government agency Enterprise Singapore and 45% by PSA, which runs the Singapore Port. PSA is an associate of GeTS for developing CALISTA. Some other well-known blockchain trade platforms include dltledgers, the Global Shipping Business Network, and TradeLens. Meantime, Contour is another Singapore-based trade finance platform that was launched earlier this year.