IMDA, global banks concludes world's first CBT digital financing pilot
IMDA’s TradeTrust Framework was used for the initiative.
The world’s first digital cross-border trade financing pilot, spearheaded by the Monetary Authority of Singapore (MAS) and the Infocomm Media Development Authority (IMDA), and the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has concluded.
The pilot was conducted in collaboration with global banks, such as DBS Bank, Emirates NBD, and Standard Chartered.
It used IMDA’s TradeTrust framework to facilitate the transfer of electronic records between jurisdictions that have adopted the United Nations Commission on International Trade Law or UNCITRAL Model Law on Electronic Transferable Records (MLETR).
According to the release, this is to have a standard on the legal recognition of digital documents, which include electronic bills of lading across both jurisdictions. This, in turn, will complement the larger global trade movement by the G7 economies.
The adoption of TradeTrust also allows the framework to provide proof of authenticity, origin and ownership of digital documents used in trade finance, which would help combat fraud, reduce costs, and strengthen trust and efficiency.
MLETR’s adoption into statute law also means increased legal confidence and commercial predictability to parties in Singapore and ADGM.
Leaders from IMDA, MAS, and FSRA all agreed that with the success of this pilot, the adoption of digital trade finance in both Singapore and the region is to be expected. They also highlighted the role of trade finance as a key enabler for the development and growth of the global economy.
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