Today, CIMB Bank’s Singapore Branch said it completed a trade finance transaction using iTrust’s blockchain and internet of things (IoT) platform. The transaction involves the financing of dairy products imported into China with an expected cash flow of up to $100 million a year. It marks the launch of iTrust’s platform into production.
iTrust’s platform uses IoT to enable real-time monitoring of the cargo in transit and the warehouse. The data collected by IoT devices is tracked using blockchain, along with other trade financing documents. The goal is to provide involved parties with a secure and immutable source of data to eliminate fraud and facilitate credit.
In trade finance, the bill of lading is an important document to release payments. In the legacy system, the bill of lading is transferred to the cargo buyer by e-mail or other physical means. This makes it relatively easy to forge the document. It is harder to commit fraud by digitally signing the document and storing it or a hashed version (like a fingerprint) on a blockchain.
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