CIMB Bank Berhad Singapore has partnered with iTrust to start offering blockchain trade financing of up to one hundred million dollars for corporate clients.
iTrust provides a functional platform focusing on blockchain technology and the Internet of Things (IoT), which is why CIMB has decided to use the company’s expertise.
Blockchain trade financing
Thanks to this partnership, the first blockchain trade financing transaction has been successfully completed.
This first transaction comes in connection with dairy products import into China, CIMB expects this transaction to generate significant flows, some to the amount of one hundred million dollars.
What iTrust brings to the mix is traceability and security. Thanks to its blockchain platform, all transactions and flows are securely recorded. Not only that, but products will be traceable throughout their journey from one warehouse to the other.
CIMB’s primary goal is to incorporate this high level of security, in order to make commodities trade financing more predictable, and less of a risky investment. With the transparency iTrust brings to the project, CIMB believes it will attract more customers to blockchain trade financing. Consequently, this will increase the number of credit requests covered by the bank.
Blockchain technology has become a standard for the import-export business industry, as it offers undeniable benefits when it comes to traceability.
Many big enterprise names are now using blockchain technology in order to bring transparency to their customers. Some examples include Walmart with its seafood traceability project and the IBM Food Trust, which has attracted names like Kelloggs and Nestle.