Singapore digital trade documentation framework to combine with global Swift network

GLOBAL financial messaging network Swift and Singapore's Infocomm Media Development Authority (IMDA) have partnered to accelerate trade digitalisation around the world.

They will combine Singapore's TradeTrust - an interoperability framework that connects platforms to exchange digital trade documentation - with the Swift community, under a memorandum of intent (MOI) signed on Monday.

The goal is a more efficient and cost-effective cross-border paperless trade that does not need multiple bilateral linkages and siloed systems, for Swift's community of more than 11,000 financial institutions and corporates in over 200 countries and territories. Financial institutions use Swift's vast network to securely send and receive information, such as money transfer instructions, through a standardised system of codes.

IMDA and Swift said in a joint statement that moving manual processes to digitally enabled ones may also shorten trade-processing times and create possibilities for innovation such as new trade-finance offerings.

Singapore is collaborating with domestic and international agencies as well as industry partners to develop TradeTrust.

Using distributed ledger technology, TradeTrust will provide proof of authenticity and origins of documents. The current open-source software release is also able to offer title transfer electronically. This functions alongside legal harmonisation to recognise these digital documents.

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When TradeTrust is paired with Swift's ability to securely transport industry-standardised electronic trade messaging, scanned hardcopy documentation and digitally signed assets, this will pave the way for the seamless exchange of electronic trade documents globally.

IMDA and Swift will work with a group of financial institutions, including DBS, HSBC, JPMorgan and Standard Chartered Bank, to support the community in its trade digitalisation efforts.

Earlier this year, IMDA signed a cooperation agreement with the International Chamber of Commerce and 17 multinational firms to move from paper-based processes to digitally-enabled ones.