CIMB Bank in Singapore plans to pump up to 100 million USD in trade finance transactions via a blockchain network over the next 12 months. The blockchain platform is further backed by a company run by GIC’s former head of technology, and a Singapore security-tracking firm backed by Temasek’s Heliconia Capital.
CIMB, in the companionship of iTrust, victoriously completed its first structured trade financing transaction this month. The transaction comprised the financing of dairy products imported to China. As reported, US$1 million will be the average trade size on the platform, with every trade to be carried by a single borrower.
iTrust renders secured and safe real-time tracing of the cargo in transit, and in the warehouse with the use of the blockchain technology. CIMB stated the aim of adopting blockchain was to secure the documents and cargo is to lessen hazards linked with the commodity trade financing. The CEO of CIMB Bank, Mak Lye Mun, said, “This blockchain trade financing with iTrust will present an opportunity for CIMB Singapore to support our customers more efficiently and cost-effectively. It mitigates fraud risk, and alerts us to any unauthorized movement of the financed cargo.”
Lim Chee Kean, the CEO, and co-founder of iTrust, said, “We believe that the day will come whereby all lenders and borrowers would demand to have a secured real-time view of their cargo under financing on a secure and immutable blockchain platform like iTrust.”