Trade Finance Forum › Forums › Trade Finance › Basics › How will innovations in technology—particularly blockchain—affect trade financing in the years to come? How does this affect current practices in trade finance? › Reply To: How will innovations in technology—particularly blockchain—affect trade financing in the years to come? How does this affect current practices in trade finance?
International trade’s value chain is notoriously intricate. Despite the fact that its transactions involve numerous parties, trade can nonetheless benefit from the implementation of blockchain technology in areas such as trade financing, customs administration, transportation, and logistics. Because of the extensive prior efforts to digitalize trade transactions, the most common application of blockchain technology is in cross-border payments and settlements.
Blockchain technology has the potential to simplify the myriad paperwork procedures currently required for international trade. The blockchain’s potential to streamline commercial transactions is already being investigated. For instance, Triterras’ Kratos in Singapore uses Amazon Web Services’ (AWS) managed Hyperledger private blockchain for Trade, Trade Finance, and Supply Chain Finance. By facilitating the digitization of trades, the Kratos platform helps the trade finance industry reduce risk and increase productivity. It’s also a breeze to connect with investors all over the world.