Today, IFFCO Singapore (ISPL) announced the launch of its trade and trade finance blockchain platform developed by blockchain firm
dltledgers. The company completed its first live transaction for moving Palm Oil and extracts for IFFCO Group from Malaysia and Indonesia to the Middle East with support from Standard Chartered. UAE-headquartered
IFFCO is a major agribusiness company in the region. It also produces foods such as confectionery, cakes, ice cream and others.
ISPL said the digitized trade transaction involved both import and export processes and took three hours to complete against the 10-day paper-based process. The firm said it is using blockchain for invoice financing on the buy-side and digital avalisation for Document against Acceptance (DA) on the sell-side. The firm claimed this is the first-ever blockchain digital avalisation, which guarantees payment against a bill of exchange if the importer defaults.
“This move to a digital system based on #dltledgers blockchain is part of our business strategy to enter the digital space to leverage on innovative emerging technologies involving smart contracts, smart documentation and digital consensus in blockchain, we are able to access earlier financing from bank as the documentation flow is much closer to real-time,” says P R Thakore, CEO, IFFCO Singapore.
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