CIMB Bank Singapore plans to provide up to US$100 million in trade financing transactions over the next 12 months on a blockchain platform backed by 1Citadel and Ascent.

CIMB and iTrust announced the successful completion of its first structured trade financing transaction on the platform run by Singapore-based iTrust this month, involving the financing of dairy products imported into China.

iTrust provides secured real-time tracking of the cargo in transit and in the warehouse using blockchain-based technology. This means that all data and documents from the transaction are placed on a distributed ledger.

It is backed by 1Citadel, which focuses on blockchain and was started by Ong Hian Leong, who ran the IT division at GIC from 2000 to 2017. iTrust is also backed by Ascent Solutions, whose corporate investors include Heliconia Capital and UOB Ventures.

CEO of CIMB Bank in Singapore, Mak Lye Mun, 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 to any unauthorised movement of the financed cargo."

CIMB and iTrust are looking to collaborate for trade financing in other markets as well.

CEO & co-founder of iTrust, Mr. Lim Chee Kean said: "We believe that the day will come whereby all lenders and borrowers would demand to have a secured real-time view of their cargo under financing on a secure and immutable blockchain platform like iTrust."

North Ridge Partners are advisors to Ascent and iTrust.

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