This bank uses the Ant’s Trade Finance Blockchain Trusple
DBS Bank announced that they executed their first trade finance transaction on the Trusple blockchain. The transaction was around $40,000 for artificial construction stone material, called iQuartz.
Trusple uses AntChain to register the purchase order on the blockchain, which will enable transparency. Once it has been acknowledged, the supplier can raise finance for the bank payment guarantee. The banks have been a bit anxious about this since they have a huge difference regarding the genuineness of transactions.
Besides the usual trade finance advantages, the solution will significantly reduce the friction of the supplier. Now, DBS stays with the Singapore-China trade corridor.
DBS Group Head of SME Banking, Joye Tee told that SMEs are looking to tap on regional opportunities to access new markets and secure their supply chain, but are often ruffled by trade processes. He further adds that DBS is overcasting the barriers for SMEs to participate in Asia’s post-pandemic economic improvement.
Although DBS Bank will be the first one to go up in Asia. When the solution first came on the market, several major international banks had already signed up, such as BNP Paribas, Citi, Deutsche Bank, and many more.
Various blockchain solutions are targeting supply chains such as IBM and Maersk. But, most of the banks do not target SMEs and nor do they have Ant’s pedigree in e-commerce and finance.
In other terms, it was not an easy journey for Ant since it pulled its IPO last year. The company has been forced to reshape the financial holding company.