IBM launches Blockchain trade finance platform in South Asia

IBM launches Blockchain trade finance platform in South Asia

The platform was launched last week, and was put in place to remedy trade finance problems. It will serve India and wider South Asia and form multi-party, cross-border networks for trading by using blockchain technology.

To increase efficiency, the platform manages many roles; including logistics, certifications, insurance, and importing and exporting. Jitan Chandanani, Partner- Blockchain Leader at IBM, explains, “So any trader from India or Sri Lanka can come on the platform make a purchase and complete all the procedures right there without having to run about to ten different people. While we work in silos with manufacturer, supplier and logistics, this platform will bring them altogether on one platform.” He says the platform will reduce operational costs by 30-40%.

He also notes that since trade finance requires nearly 200 documents, if something goes wrong it can normally take a couple of weeks to solve, but with blockchain technology he notes, “one can almost finish it in real-time and if anything goes wrong it can be corrected in a day”.

IBM has signed MoUs with four Indian banks, but as of last week has not publicly disclosed the identities of these parties.