UK-based multinational bank Standard Chartered recently announced their joint venture with supply chain finance startup Linklogis, a company known for using blockchain, to open a trade finance platform, according to media reports.
The platform is expected to attract institutional investors looking for an alternative asset class. The joint venture will also determine the viability of the crypto technology in global trade. The bank mentioned that the new platform will be named ‘Olea’ and will be headquartered in Singapore.
Investors on Olea will be presented with a wide array of trade finance assets globally, with a focus on Asia, while the businesses can receive financing through seamless and transparent processes.
Amelia Ng, the current managing director of SC Ventures will be the CEO of Olea and Linklogis’ Vice-Chairperson and Chief Risk Officer Letitia Chau will be the deputy CEO.
Amelia told the media, “By marrying Standard Chartered’s international trade and risk management expertise and unparalleled knowledge of Asia, Africa and the Middle East with Linklogis’ innovations in supply chain technology, Olea is uniquely positioned to reinvent trade finance and be a force for good.”
The partnership between these two companies started in 2019 after signing a memorandum of understanding (MoU) where they agreed to develop innovation in the supply chain sector. Last year, Standard Chartered purchased an equity stake in Linklogis for an undisclosed amount.
Prior to this, Standard Chartered has leveraged blockchain technology in numerous instances. In 2019, the bank completed the pilot of the first blockchain-powered cross-border Line of Credit (LC) for oil and gas companies. Last year, it also completed Bangladesh’s first blockchain-based trade transaction by issuing a Letter of Credit for garment manufacturer Viyellatex.
Apart from blockchain, Standard Chartered has also shown interest in cryptocurrency and in June 2021, a unit of the bank was considering creating a crypto brokerage and exchange platform in Britain and Europe.