Standard Chartered moves ahead with trade finance smart contracts
The bank announces completion of a proof of concept (PoC) delivering distributed ledger technology (DLT) in trade finance.
Standard Chartered Bank (Hong Kong) has successfully completed a proof of concept (PoC) delivering distributed ledger technology (DLT) and the use of smart contracts for trade finance to improve customer experience, enhance operational efficiencies and reduce potential frauds for financiers, importers and exporters. The bank leads the DLT Trade Finance Working Group under Hong Kong Monetary Authority’s (HKMA) fintech facilitation office, collaborating with Deloitte Touche Tohmatsu Limited and four other banks in Hong Kong.
“This PoC marks a significant milestone in the digitisation journey of trade finance,” commented the bank. “The DLT platform prototype is the foundation for an open eco-system for multiple parties in trade finance. The features of DLT real-time data update and the transparency between intermediaries can help importers and exporters mitigate payment and non-performance risks respectively; reduce cost through document digitisation and automate labour-intensive processes through smart contracts.”
In the next phase of the project, Standard Chartered will look at inviting clients and intermediaries to join the pilot stage. Apart from driving the DLT Trade Finance Working Group, the bank has also participated in other fintech PoC projects initiated by HKMA, including digital ID management and mortgage.