Thailand Launches National Trade Blockchain, Integrates Japan’s TradeWaltz, Singapore’s NTP – Ledger Insights
Last week, Thailand’s JSCCIB announced the first pilots for its blockchain-based National Digital Trade Platform (NDTP). It has also integrated with Japanese blockchain TradeWaltz and Singapore’s single window Networked Trade Platform (NTP).
The goal of the NDTP is to digitize the trade process to speed up imports and exports and improve access to trade finance for SMEs. It is a private sector project run by three trade associations, the Thai Bankers Association, the Federation of Thai Industries and the Board of Trade. The government is involved through the office of the Development Commission for the Public Sector.
The first phase of the NDTP involves digitizing various trade documents, such as purchase orders, invoices and packing lists using UN/CEFACT standards and transport documents, such as bills of lading and sea waybills.
The authenticity of documents used on the NDTP is verified because the NDTP has been integrated with Thailand’s Trade Document Register (TDR), which was published early this year, allowing banks to check for double funding of trade documents.
Thailand’s main payment system operation, National ITMX Company, developed and operates Phase 1 of the NDTP platform. Baker McKenzie Thailand is responsible for the legal aspects. The first banks to participate in the network are Bangkok Bank, Bank of Ayudhya, Kasikorn Bank, Krungthai Bank, Siam Commercial Bank and TMB Thanachart.
Two pilot transactions (real) were made between Thailand and Singapore, and four proof of concept transactions were tested with Japan.
Speaking about the NDTP, Payong Srivanich, chairman of the Thai Bankers’ Association, said it “will make exporting and importing easier, faster and more convenient for not only exporters and importers, but also all other stakeholders. It will reduce the time spent on preparing and process documents.”
He continued, “Banks will be able to verify supporting documents for financing more effectively in addition to the existing dual financial control on TDR. This will increase access to financing for exporters and importers and in turn increase the competitiveness of Thai exports, especially for SMEs .
For Japan’s TradeWaltz, a blockchain platform with more than 130 Japanese participants, in addition to connecting to Singapore and Thailand, it has also implemented a basic connection with TradeWindow that supports trade with New Zealand and Australia. It also measures the emissions involved in international shipments.
TradeWaltz was developed by NTT and was founded by several large Japanese entities, including three trading conglomerates Mitsubishi Corp, Toyota Tsusho and Kanematsu, as well as MUFG, Tokio Marine & Nichido Fire and Sompo. It is in production and has raised a relatively modest ¥3.9 billion ($27.5 million) in funding.
The major senders operate two other major trading blockchain platforms, TradeLens and GSBN.
