Standard Chartered launches digital blockchain trade finance platform in Singapore
A joint venture between the Asia-heavy bank and a Chinese supply chain tech player aims to make trade finance an alternative asset class with digital efficiency.
Standard Chartered has launched a blockchain-based digital trade finance platform in partnership with Linklogis, a Chinese supply chain finance technology company.
The new venture, to be called Olea, is intended to attract institutional investors to participate in supply chain financing as an alternative asset class. Headquartered in Singapore, Olea will be run by Amelia Ng, who was Standard Chartered’s global head of strategic initiatives within the corporate, commercial and institutional banking (CCIB) division before moving into SC Ventures, the fintech and venture capital arm of the bank, in order to develop this business.
The idea is to combine StanChart’s trade finance and risk management skills with supply chain technology developed by Linklogis.
There is certainly a gap to be filled. The Asian Development Bank estimated the global trade finance gap to be $1.5 trillion in 2019 and has argued that the United Nations Sustainable Development Goals will be at risk if such a large gap persists in hampering international trade.
The primary goal is to channel alternative liquidity from professional investors to help to drive sustainable finance
And things have clearly got worse in trade terms since 2019.