CIMB use IoT and blockchain for trade transaction
(18 October 2019 – Singapore) CIMB Bank Berhad, Singapore, has completed a trade financing transaction for the import of dairy products into China using IoT cargo sensors and a distributed ledger platform from blockchain company iTrust.
For the transaction, which is expected to generate flows of up to US$100 million a year, all data and documents were shared on a permissioned blockchain. The cargo was also tracked in real-time using IoT sensors, ensuring visibility in transit and upon docking at the warehouse.
The solution addresses many of the current risks of trade financing fraud such as phantom cargoes, falsified verification documents and collateral theft.
Mak Lye Mun, CEO of CIMB Bank Berhad, Singapore, said of the transaction: “This blockchain trade financing with iTrust will present an opportunity for CIMB Singapore to support our customers more efficiently and cost-effectively. It mitigates fraud risk and alerts us of any unauthorized movement of the financed cargo. We are looking forward to working closely with iTrust on this innovative way of trade financing in other markets as well.”