CIMB Bank Singapore completes first trade finance transaction with blockchain
The Singapore branch of CIMB Bank Berhad has completed a structured trade finance transaction on a blockchain and internet of things (IoT) platform provided by iTrust.
The transaction involved the financing of dairy products imported into China and is expected to generate transaction flows of up to $100 million a year.
According to iTrust, all documents and data from the transaction are stored on the blockchain for provenance and immutability.
“Given the rapid technology shifts in the market today, we will continue to focus on digitalisation and customer experience to transform the way we finance our corporate customers, thus adding value to our services,” says Mak Lye Mun, CEO of CIMB Bank Berhad Singapore.
“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 of any unauthorised movement of the financed cargo.”
Lim Chee Kean, CEO and co-founder of iTrust adds; “Digitalisation is gradually transforming financing. 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.”
CIMB Singapore is part of the CIMB Group, which operates several subsidiaries, including consumer and commercial banking in Malaysia, Cambodia, and Thailand. It holds $19.8 billion in assets under management.