DBS Joins Blockchain Trade Finance Network
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DBS joins blockchain network Countour to tap into the platform’s digitalized trade finance capabilities.
DBS becomes Singapore’s first lender to join blockchain firm R3’s Corda to provide end-to-end letter of credit (LC) settlement to clients. Via the Corda network, the bank expects shortened settlement time, reduced paperwork and simplified processes.
In addition, the platform also enables digitalized real-time negotiations, post-endorsement sharing with banks and real-time tracking of transactions with a full audit trail.
Joining Contour’s growing ecosystem of banks and partners aligns with DBS’s ongoing efforts to drive greater efficiencies in trade and unlock strategic value for its corporate customers, DBS said in a statement.
In the midst of an ongoing coronavirus pandemic, numerous banking sub-segments have been capitalizing on the opportunity for greater openness to digital solutions and an accelerated rate of adoption. Trade finance is no exception and any solution that can speed up cash flow collection in a secure fashion is likely all the more welcome in the current environment.
This is more than simply digitizing a historically paper-based service, said John Laurens, DBS’s group head of global transaction services. It’s about transforming the way industries work by providing greater transparency, security and speed to build sustainable trade ecosystems that are able to weather the peaks and troughs of economic cycles and are resilient in times of crisis.
DBS joins BNP Paribas, Bangkok Bank, ING, HSBC, Standard Chartered and Citi Ventures as other members of Singapore-based Countour’s blockchain trade finance network.
Questions & Answers
Q.Why has DBS chosen to join the Contour blockchain network?
Why has DBS chosen to join the Contour blockchain network?
DBS joined Contour to use its digitalised trade finance capabilities, aiming to drive greater efficiencies in trade. This move also aligns with their efforts to unlock strategic value for corporate customers through improved transparency, security, and speed.
Q.What specific benefits does DBS expect to gain from using the Corda network for trade finance?
What specific benefits does DBS expect to gain from using the Corda network for trade finance?
Through the Corda network, DBS anticipates shortened settlement times, reduced paperwork, and simplified processes. The platform also allows for digitalised real-time negotiations, post-endorsement sharing with banks, and real-time transaction tracking with an audit trail.
Q.Which other financial institutions are already members of the Contour blockchain trade finance network?
Which other financial institutions are already members of the Contour blockchain trade finance network?
Other financial institutions that are members of Contour include BNP Paribas, Bangkok Bank, ING, HSBC, Standard Chartered, and Citi Ventures. DBS is joining this established group of banks and partners.
Q.How does DBS view the current environment's impact on the adoption of digital solutions like blockchain?
How does DBS view the current environment's impact on the adoption of digital solutions like blockchain?
DBS notes that the ongoing coronavirus pandemic has increased openness to digital solutions and accelerated their adoption across banking sub-segments. Solutions that can speed up secure cash flow collection, like blockchain, are particularly welcome now.
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