The Singapore division of CIMB Bank Berhad carried out a structured trade finance transaction on a blockchain-based and internet of things (IoT) platform, developed by iTrust.
The transaction reportedly involved the financing of Chinese imported dairy products and may generate yearly transaction flows of approximately $100 million.
iTrust’s management said that all data and documents from the transaction reside on the blockchain for provenance and immutability.
Mak Lye Mun, CEO at CIMB Bank Berhad Singapore, stated:
“Given the rapid technology shifts in the market today, we will continue to focus on digitalization and customer experience to transform the way we finance our corporate customers, thus adding value to our services.”
He added:
“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 noted:
“Digitalization 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 oversees several other subsidiaries, including companies dealing in consumer and commercial banking in Cambodia, Malaysia, and Thailand.
CIMB has approximately $19.8 billion in assets under management.