Standard Chartered leads pilot to digitise the trade distribution market
02 November 2022 Singapore
Image: ipopba
Standard Chartered is leading a pilot initiative to explore the issuance of tokens linked to trade finance assets.
The project aims to digitise the trade distribution market by transforming trade assets into transferable instruments that are more transparent and accessible to investors.
The initiative is in collaboration with The Monetary Authority of Singapore’s Project Guardian, which explores potential decentralised finance applications in wholesale funding markets.
Commenting on the pilot, Kai Fehr, global head of trade and working capital at Standard Chartered, says: “Digital assets are here to stay, and we see their potential to play a greater role in supporting the real economy.
“By transforming trade assets into transferable instruments, we aim to improve the accessibility to an asset class – which has largely been the domain of banks – with participation from a broader range of investors.
He adds: “This also offers investors the option to balance their portfolio with a digital token that has traceable intrinsic value.”
The launch comes in the same month that Standard Chartered launched Trade Track-It, a digital trade transaction portal providing 24/7, near real-time end-to-end visibility of trade transaction status globally.
In line with Standard Charter’s sustainability goals, Trade Track-It also includes a sustainability indicator. This allows clients to track whether their trade transactions meet the bank’s sustainable trade finance standards.
The project aims to digitise the trade distribution market by transforming trade assets into transferable instruments that are more transparent and accessible to investors.
The initiative is in collaboration with The Monetary Authority of Singapore’s Project Guardian, which explores potential decentralised finance applications in wholesale funding markets.
Commenting on the pilot, Kai Fehr, global head of trade and working capital at Standard Chartered, says: “Digital assets are here to stay, and we see their potential to play a greater role in supporting the real economy.
“By transforming trade assets into transferable instruments, we aim to improve the accessibility to an asset class – which has largely been the domain of banks – with participation from a broader range of investors.
He adds: “This also offers investors the option to balance their portfolio with a digital token that has traceable intrinsic value.”
The launch comes in the same month that Standard Chartered launched Trade Track-It, a digital trade transaction portal providing 24/7, near real-time end-to-end visibility of trade transaction status globally.
In line with Standard Charter’s sustainability goals, Trade Track-It also includes a sustainability indicator. This allows clients to track whether their trade transactions meet the bank’s sustainable trade finance standards.
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