The collaboration will pave the way for the seamless exchange of electronic trade documents around the world, shorter trade processing times, and opportunities for innovation.
SWIFT has signed a Memorandum of Intent with Singapore’s IMDA (Infocomm Media Development Authority) to explore the transition of paper-based trade documents to digitally-signed assets, which will be transported across the SWIFT platform with the support of key partners across the ecosystem.
Through the collaboration, SWIFT envisions that its community of more than 11,000 financial institutions and corporates in over 200 countries and territories could be enjoying more efficient and cost-effective cross-border paperless trade, without the need for multiple bilateral linkages and silo systems.
Yet, the partnership is not just about technology, SWIFT says. IMDA’s interoperability framework, TradeTrust, provides proof of authenticity of documents and offers title transfers through open-source software.
When 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 around the world, shorter trade processing times, and opportunities for innovation in trade financing offerings.
“The trade ecosystem faces digital disruption and requires open standards, legal harmonisation and coming together as a community to address fragmentation, friction and risks,” said SWIFT Chief Business Development Officer Alain Raes. “Our collaboration with Singapore’s global TradeTrust initiative allows us to play a central role in this effort.”
“Creating value for the community remains a core focus, and we are committed to working with the Singapore government towards a shared vision of a frictionless, open, global trade ecosystem underpinned by international standards, and legal harmonisation.”
Under the Memorandum of Intent, SWIFT and IMDA will work with a group of leading financial institutions to support the community in its trade digitalisation efforts. The participating banks include DBS Bank, HSBC, JP Morgan, and Standard Chartered Bank, among others.
A fact sheet describing TradeTrust is available for download here.