A Singaporean bank branch of the CIMB group has completed its first blockchain-based trade financing transaction.
Using Blockchain in Finance Sector
On Oct. 17. Yahoo Singapore reported that the transaction was done using blockchain and Internet of things (IoT) platform developed by the local trade financing firm iTrust Trading.
CIMB intends to minimize the risks associated with commodity trade financing while facilitating credit extension for its customers.
It will be done by applying blockchain-based IoT while gaining access to real-time monitoring of the cargo detail in transit and in the warehouse.
All the stakeholders involved will have secured accessibility and data integrity of the digital documents that are located on the blockchain.
Biggest Bank in ASEAN Region
The CEO of CIMB Singapore Mak Lye Mun said that the technology will enable banks to support its clients in serving more effectively and in a cost-effective way while mitigating risk fraud. Any unauthorized movement of the financed cargo will be alerted.
The company is planning to implement iTrust on technology applications in other markets.
The bank is headquartered in Malaysia and is the fifth largest group of banks in the ASEAN region and also one of the biggest Islamic banks. It has a market capitalization of $48 billion at publishing time with over 36,000 employees located in over 16 countries.
Source: cointelegraph.com | Image: Shutterstock