Singapore recently achieved a major milestone in global trade digitisation by completing a live shipment to Thailand. Specifically, the Infocomm Media Development Authority (IMDA) used the TradeTrust framework to facilitate this transaction. This event marks the world’s first cross-border trade using an Electronic Transferable Record (ETR), which serves as the digital equivalent of a Bill of Lading.
How TradeTrust Powers Trade Digitisation
The TradeTrust framework connects governments and businesses through a public blockchain. Consequently, this system enables different digital platforms to exchange and verify electronic trade documents seamlessly. Because TradeTrust follows globally-accepted standards, users can endorse and transfer titles digitally with full legal confidence. Furthermore, the framework aligns with the UNCITRAL Model Law on Electronic Transferable Records (MLETR), which Singapore adopted in 2021.
Successful Implementation of Trade Digitisation
Industry partners including ExxonMobil Asia Pacific and Bunkerchain collaborated to execute this landmark trade. During the process, ExxonMobil shipped liquid chemicals from Singapore to Thailand. Subsequently, the vessel owner issued an electronic Bill of Lading (eBL) through a TradeTrust-enabled platform. To ensure security, the partners created Digital Passports for Ships to verify the digital identities involved in the signing.
Legal Breakthroughs in Digital Trade
This trade proved that trade digitisation can function even in jurisdictions that have not yet adopted MLETR, such as Thailand. The eBL operated under statutory law without the need for additional private contracts or rulebooks. Moreover, the vessel owner received support from their Protection and Indemnity Club. This support confirms that liabilities for an eBL match those of traditional paper-based documents. Therefore, this successful test demonstrates that the industry is ready for a more efficient and digitalised future.
Courtesy: tradefinanceglobal.com
