UAE IFFCO Group collaborates with dltledgers on blockchain trading platform
IFFCO Singapore Pte Ltd (ISPL), regional arm of the IFFCO Group based in UAE has announced the launch of its new and innovative enterprise grade blockchain platform in collaboration with #dltledgers, an award winning blockchain platform developer based in Singapore. ISPL reported the completion of its first live end-to-end trade in blockchain, moving cross border goods on Palm Oil and its extracts, which is USD100Mn worth of business annually for IFFCO Group from Malaysia/Indonesia to the Middle east.
ISPL has pioneered the digital flow running an end to end blockchain trade finance transaction using Invoice Financing on the Buy Side and Digital Avalisation for Document against Acceptance (DA) on the Sell side of the trade in the live production platform of #dltledgers. The digital endorsement of the Bill of Exchange by Buyer Bank is the first of its kind in a live blockchain environment proving the dynamic consensus mechanism using blockchain as a powerful feature- functionality that banks will adopt in the future to ensure authenticity and security in trade finance transactions.
The end to end fully digitised trade execution and trade finance transaction, involving both import and export processes and multiple parties was executed in 3 hours as against a 10-day paper process otherwise in a seamless flow with digital connectivity on #dltledgers blockchain platform. ISPL could execute multiple transactions in a day via the #dltledgers blockchain platform improving their process efficiency and realised margins in dollar value terms.
“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 (ISPL).
“The real value lies in potentially having more transactions and having real reduction in our financing costs by at least 20-25% by using #dltledgers blockchain technology. We have taken a phased approach and have seen a reduction in cycle time from 10 days to 2 days, saving of 8 days in the end to end execution process via #dltledgers platform which is humungous,” says Anupam Basak, Head-Regional Finance, IFFCO Singapore (ISPL).
Samuel Mathew, MD, Global head of documentary Trade, Trade digitisation and Chief Product Owner Trade Platform Transformation in Singapore said, “Standard Chartered is a key player in the digital transformation space. We are seeing a strong adoption by Corporate clients like ISPL for #dltledgers blockchain platform for cross-border trade. We are excited to be part of the execution of World’s first Digital Avalisation on Blockchain. Being part of this digital space has helped banks with more visibility into the customers operations, increasing transparency of the trade. This will surely reduce fraud and related risk and build cross border interconnectivity helping bank to move away from paper-based manual complex transactions involving multiple buys and sell into a seamless, more secure and efficient flow.”
In one of the many ISPL transaction executed on the platform it had 50 plus documents and 8 Bill of Ladings (BLs). Such complex transactions involving multi parties involves a lot of paper-intensive manual activities which are now streamlined on the #dltledgers blockchain platform. Digitisation of all parties and a secure repository of digital documents which are in a trade life cycle are of immense value for trading houses and companies involved in huge turnovers and experience higher trade volumes. The digitalisation of the post trade execution reduces cycle times, allowing fulfilment of more orders. The various transaction by ISPL on the #dltledgers blockchain platform involved multiple parties in different geographies – Singapore, Indonesia, Malaysia, South Korea and UAE. ISPL has created a private network on blockchain of their 100 plus existing suppliers in South East Asia Region, multiple banks, Logistics and Insurance companies generating a truly blockchain experience.
As trades intertwine and evolve, demands for a networked and collaborative model will intensify. Not only do transactions need to be seamless and safe, clients are increasingly looking for innovative solutions that save them time and costs.
“#dltledgers platform capabilities (dynamic consensus engine, digital assets engine, control trigger table, trade execution engine, network collaboration, digital trade documents engine, digital file cabinet, financial institution integration engine, Integrated API layer, digital identity engine, BC Link integration w ERP layer) will add strengths to digital leadership and create their private multi party network with unique nodal architecture, reliant on the easy availability and robustness of financing mechanisms. Considering that trade finance is widely viewed as the fuel for global commerce, it’s easy to see why customer centric blockchain platforms like ours is dominating conversations in the trade finance world. We will continue to grow and expand,” says Samir Neji, CEO, #dltledgers.
