Contour, the global digital trade finance network has today announced its strategic partnership with TradeGo, a blockchain-based commodity trading service platform that enables the secure and transparent transfer of electronic Bills of Lading (eBL).
Today, the demand for digital trade finance solutions is even more pertinent. News of Trafigura’s systemic nickel fraud highlights why the slow process to digitise trade finance processes has left the commodities trading industry more vulnerable to fraudulent incidents.
TradeGo is a Singaporean-domiciled company founded by a cross-industry consortium, including major trade participants PetroChina International, Sinochem Energy, COSCO Shipping Energy and Bank of China. The platform enables the secure and transparent transfer of electronic Bills of Lading (eBL) and warehouse receipts for clients across the commodity supply chain, with a focus on commodity flows in and out of China.
The Contour-TradeGo collaboration is significant for the ecosystem as it connects the bulk commodities physical supply chain in China to an established global financial supply chain network. No one solution can provide end-to-end digitisation but through partnerships like this, corporates and banks can sync their trade finance requirements with the physical shipment and benefit from an interoperable, end-to-end paperless transaction.
The Bill of Lading is an important document used to facilitate the transfer of ownership for cargo shipments, and enables banks to finance goods that are still out at sea. Digitally transforming Bills of Lading through eBL solutions, such as this one, is a key feature to digitise the entire trade finance process as other documents involved in trade finance, such as invoices or packing lists, are much easier to digitise.
The TradeGo eBL facilitates the digital transfer of title process in accordance to international standards and is approved by the shipping industries’ Protection and Indemnity (P&I) clubs, simplifying the issuance, transfer and surrender of original shipping documents. While still new, the TradeGo eBL is quickly gaining adoption across several commodities industries and major trade finance banks in China.
Contour’s expanding global network connects banks and corporates on a common decentralised network to improve digitisation, speed and transparency in their trade finance processes. TradeGo’s eBL offers a complementary solution, further enhancing the benefits for both banks and corporates. For example, when using Contour’s digital Letter of Credit (LC) solution, the buyer and seller can specify the TradeGo eBL as the required proof of shipment and reduce the need to receive, send, and amend paper documents. This enhances the overall user experience, reduces complex workflows and further improves turn-around time for both banks and corporates.
Carl Wegner, CEO at Contour said: “Contour’s goal is to create the trade finance network of tomorrow. Our collaboration with TradeGo highlights the strength of strategic partnerships in accelerating trade finance digitisation in China, bringing us a step closer to establishing a truly global ecosystem.”
Jason Yu, CEO at TradeGo said: “ TradeGo is driven by customer value. We expect to build a digital bridge for China’s commodity customers to the digital ecosystem of global trade finance through cooperation with platforms just like Contour, to enrich our products and service with better user experience.”