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Friday, September 25, 2020 – 3:40 pm
DBS said on Friday that it is now a banking partner in a recently launched blockchain trading platform developed by a unit of Ant Group.
Called Trusple, the platform uses the blockchain technology from Ant’s blockchain business, AntChain, to facilitate trade and trade finance.
DBS said in a press release that it is the first Asian banking partner on the platform. The other partner banks are BNP Paribas, Citibank, Deutsche Bank and Standard Chartered.
Trusple hopes to serve as a platform for distributors and suppliers to market their products and access trade financing digitally in real time.
When a buyer or seller generates a digital trade order on the platform, the order will be automatically recorded on the blockchain. This improves transparency in complex supply chains, fostering greater trust between parties that may not have interacted before, DBS said.
The platform aims to facilitate greater acceptance and adoption of digital commerce processes among companies, DBS said, especially small and medium-sized enterprises (SMEs) that face many pain points when it comes to cross-border international trade.
DBS, together with other member banks, will offer payment guarantees for all goods traded on the platform. The financial bank will automatically send the payment to the seller once the buyer digitally acknowledges receipt of the merchandise on Trusple.
This mitigates the risk of late payments and enables vendors to enjoy greater cash flow predictability, allowing them to better optimize their working capital for strategic opportunities to grow their business.
Member banks can also leverage insights from transactional data between buyers and suppliers to determine business credit quality and offer business loans at competitive prices through the platform.
DBS Group Institutional Banking Director Tan Su Shan said the bank’s partnership with AntChain underscores its commitment to SMEs to provide the working capital support that is key to their survival in this period of prolonged business disruptions.
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