DBS is the first Asian bank to successfully close a trade financing transaction on Ant Group's blockchain platform Trusple.
Launched in September, Trusple - a contraction of 'trust made simple' - works by generating a smart contract once a buyer and a seller upload a trading order on the platform. As the order is executed, the smart contract is automatically updated with key information, such as order placements, logistics, and tax refund options.
Using the firm's AntChain blockchain technology, the buyer’s and seller’s banks automatically process the payment settlements through the smart contract.
At DBS, the $40,000 transaction was closed on behalf of iQuartz, a Singapore SME that manufactures, fabricates and distributes artificial stone materials known as ‘quartz stone’ to its USA and Singapore customers in the building materials market.
Previously, SMEs such as iQuartz would have had to endure lengthy manual processes and complex paperwork when engaging in cross-border trade with overseas suppliers.
Joyce Tee, group head of SME banking, DBS, comments: “SMEs are increasingly looking to tap on regional opportunities to access new markets and fortify their supply chains but are often daunted by complex trade processes. By leveraging emerging technologies such as blockchain, DBS is lowering the barriers for SMEs to participate in Asia’s post-pandemic economic revival as cross-border trade activity in the region picks up.”
Alongside DBS, Ant Group has lined up several global banks, including Citi, Deutsche Bank and Standard Chartered as future partners for the platform.