Today Standard Chartered Bank announced a Singapore joint venture, Olea, with supply chain finance startup Linklogis, known for using blockchain. The target is institutional investors looking for an alternative asset class. We’ve asked whether these trade finance assets might be tokenized as digital assets, and the response was it is part of the plan.
Early last year, the bank invested in Hong Kong-based Linklogis, which mainly serves Chinese buyers and their suppliers, after first working with the supply chain finance company at the beginning of 2019.
As with most supply chain finance solutions, a large enterprise buyer onboards their suppliers to the platform. Because of the creditworthiness of the buyer and transaction verification, the risk is significantly reduced and blockchain adds another layer of transparency. It enables suppliers who might otherwise not be creditworthy to attract funding at an affordable rate.
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