A few weeks ago Ledger Insights wrote about DBS bank creating a commodity trade finance platform with AgroCorp. Today at Singapore Fintech 2018 the technology provider behind the platform, dltledgers, launched its Software as a Service platform with 124 trading partners in production.
Client Agrocorp’s head of business development Vishal Vijay said: “The practice has been for parties in the supply chain to wait for physical documents to be generated and passed from one party to another before a transfer of ownership of goods occurs.” That typically takes 5 to 10 days.
Vijay continued: “There are two age-old processes that we are trying to revolutionize in dltledgers platform. One, you are to see a faster, more efficient generation and transfer of documents and, as a result, we will also be able to make and receive payments more efficiently. More than 4500 of our growers are connected to dltledgers blockchain, giving endless visibility to our customers, while offering the required privacy.”
The global digital trade platform enables customers or suppliers, importers or exporters, to subscribe as a user and start to log all trades on the system. It involves paperless trading options including digital Bill of Lading, smart contracts, and end-to-end payments. The platform includes traceability so details about transactions can be shared with permitted trading partners. Repeat trades are automated.
To date, the system has processed more than a thousand trading transactions which translate to more than 3 million blockchain records because every step in the process is logged. More than $750 million in trade volumes have been processed on the platform.
dltledgers says it’s working with global banks, shippers and ports. It aims to “uberize” the trade finance model.
The platform is built using Hyperledger Fabric.
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Other trade platforms
For commodities, komgo is the blockchain platform founded by ING, Societe Generale, ABN Amro and several other major banks and oil traders. On the agribusiness side, the big four traders Archer Daniels Midland (ADM), Bunge, Cargill and Louis Dreyfus recently announced a blockchain and AI initiative.
The major digital trade blockchains are the IBM/Maersk TradeLens platform, CargoSmart which has signed up five of the top 10 largest shippers, and Accenture is working with the largest shipping freight forwarder Kuehne + Nagel.