Singapore's DBS and India's ICICI Bank have participated in the successful completion of the first live blockchain paperless transaction using the TradeTrust framework for a shipment between Singaporean and Indian businesses.

The framework spearheaded by Enterprise Singapore and Singapore's Infocomm Media Development Authority (IMDA) enables interoperable electronic bills of lading (eBLs) backed letter of credit (L/C) transactions between Singaporean and Indian banks and companies.

Globally, this is the first shipment to undergo a fully paperless transaction process involving traders, shippers and banks, according to IMDA.

The shipment

In this landmark transaction, Singaporean commodity trader Maptrasco shipped a container of scrap metal from Miami to Gujarat in India.

Shipping giant Maersk issued an eBL using the TradeTrust portal to Maptrasco. Simultaneously, India's Jindal Stainless applied for an L/C from ICICI Bank as the issuing bank.

DBS role

Maptrasco, which utilised DBS' facilities as the advising bank, transferred the title ownership of the eBL via the TradeTrust portal.

DBS then checked and confirmed the supporting documents as per the terms of the L/C, including the TradeTrust eBL, after which the bank used the SGTraDex platform to transfer the title ownership of the eBL to ICICI Bank.

ICICI role

Once ICICI Bank received the eBL alongside the other trade finance documents from DBS, the Indian bank used its own proprietary platform, TradeChain, to transfer the title ownership of the eBL to Jindal Stainless.

As ICICI Bank's customer, Jindal Stainless utilised the TradeChain platform to surrender the eBL to Maersk and complete the shipment. Maersk then issued an electronic delivery order for Jindal Stainless to collect the cargo at the port of discharge.

Comprehensive details provided by IMDA on this transaction can be found here.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.