A banking branch of CIMB Group in Singapore has completed its first blockchain-based trade financing transaction.
The transaction was facilitated utilizing a blockchain and Internet of Things (IoT) platform created by local trade financing company iTrust Trading, Yahoo Singapore revealed on October 17.
By applying iTrust’s blockchain-based IoT, CIMB aims to limit the risks related to commodity trade financing and facilitate credit extension for its clients by accessing real-time monitoring of the cargo information in transit and the warehouse.
The technology purportedly offers all stakeholders with secured accessibility and information integrity of digital documents that are stored on a distributed ledger.
CIMB Singapore CEO Mak Lye Mun noticed that the usage of the iTrust’s innovation empowers the bank to help its customers more proficiently and cost-effectively by lessening fraud risks and cautioning any unapproved movement of the financed cargo. The firm also intends to further partner with iTrust on innovation applications in different markets.
Based in Malaysia, CIMB Group is the fifth-biggest banking group in the Association of Southeast Asian Nations (ASEAN) and one of the largest Islamic banks. With 36,000 staff situated in 16 nations, the group has a market capitalization of $48 billion at the time of writing.
In November last year, another CIMB Group subsidiary, CIMB Group Holdings, participated on Ripple’s cross-border payments network to use Ripple’s XCurrent product for its remittance service dubbed SpeedSend.