One of Asia’s largest investment banks, CIMB Group’s Singapore-based bank, CIMB Bank Berhad Singapore, settled its first ever transaction on blockchain technology on Oct. 17. According to a Yahoo Finance press release, the bank partnered with iTrust, a trade finance blockchain solution, to efficient, instant and transparent channels of global trade.
The CEO of CIMB Bank Berhad, Singapore, Mak Lye Mun, spoke on the recent partnership and looks forward to a fruitful partnership with iTrust in future while developing global blockchain based trade solutions. He said,
“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.”
The First Blockchain Based Transaction
The banking industry is rapidly adopting blockchain technologies in a bid to reduce costs and enhance security and transparency of data. CIMB Singapore becomes the latest to join the band of banks in blockchain including JP Morgan, Santander Bank (adopted Ripple Inc. technologies) and recently Bank of America.
According to the report, the bank completed a transaction involving dairy products imported into China using the iTrust blockchain platform. The dairy import industry in China contributes close to $100 million USD but faces a number of challenges in the supply chain.
The iTrust blockchain platform ensures transparency in the supply chain of the cargo from one agent to another and provides clear tracking of the goods while in transit and storage conditions in the warehouses. By combining internet of Things (IoT) technologies and blockchain, the iTrust platform records data and documents securely in a distributed ledger and shares the information to all network participants in real-time.
CIMB Group in Blockchain
In November last year, another subsidiary of CIMB Group, CIMB Group Holdings, joined the RippleNet, a network of over 150 banks and financial institutions using the blockchain for cross border transfers. At the time, the CEO of CIMB Group, Tengku Dato’ Sri Zafrul Aziz, said,
“CIMB will focus on the ongoing efforts to enhance its digital banking proposition by providing speedy and cost-efficient solutions to our customers across ASEAN [using blockchain technology].”