Treasury Management Internation Logo

DBS Launches its First Muli-Tier Financing Facility on Blockchain Platform


Singapore – DBS Bank today announced its first multi-tier financing facility on a logistics blockchain platform named Rong-E Lian, to help small and medium-sized enterprises (SMEs) in China get faster access to trade financing.

Developed in partnership with a Chinese logistics provider, Rong-E Lian offers multi-tier financing solutions to more than 1,000 suppliers in the company’s supply chain ecosystem. The multi-tier financing solution is particularly beneficial to suppliers embedded beyond the first layer of the logistics supply chain ecosystem, as they include SMEs which may have limited access to trade financing due to their lack of scale or credit history.

Leveraging on DBS’ Application Programming Interface (APIs), the bank integrated its digital onboarding service into the blockchain platform, allowing DBS to verify the credentials of a supplier within seconds. Once credentials are verified, the bank is then able to offer digital trade financing services to upstream suppliers, often SMEs, in the ecosystem within 24 hours.

Neil Ge, CEO of DBS China, said: “Cash flow is critical to the sustainability of any business, but even more so for SMEs. However, more than half of SMEs globally tend to face rejection by financial institutions for their trade finance needs, contributing to the world’s trade finance gap of USD 1.3 trillion. By using new technologies such as blockchain and APIs, we hope to democratise trade finance by providing SMEs more affordable and convenient access to bank credit to enable them to realise their business ambitions, serve their customers well and expand into new markets with ease.”

DBS has successfully completed its first multi-tier financing transaction on the Rong-E Lian blockchain platform with suppliers in the China-based logistics supply chain ecosystem in August. This comes on the back of the bank’s other efforts to explore initiatives to deepen and broaden its partnership with businesses in the Greater Bay Area region. For instance, DBS was the first foreign bank to digitalise cross-border settlements with a one-stop digital payments and collections solution called DigiDocs in July. In addition, DigiDocs also offers the online booking of foreign exchange rates, allowing DBS customers to select their preferred exchange rate according to market real-time quotes for remittance payments.

Ginger Cheng, Head of Large and Mid-cap Corporates, Institutional Banking Group, DBS China said, “DBS believes in the huge growth potential in the Greater Bay Area, also known for being the ‘Silicon Valley of the East’. This is a groundbreaking transaction for DBS in China as we use digital technologies to develop new business models with our corporate clients. As part of our digital transformation strategy, we integrated financial services into the blockchain platform to develop a new business model and better serve upstream suppliers. As such, we are able to provide integrated trade financing, giving suppliers easy access to financing on-the-go. This is especially beneficial to SMEs as they are offered credit on better terms. We look forward to collaborating with more companies to co-create innovative digital client solutions for supply chains in China.”

Most recent episodes

HSBC’s Sibos Spotlight: Investing in the Future – from Diversity to Green Deposits

In the final instalment of HSBC’s Sibos Spotlight, Eleanor Hill (TMI) invites Nadine Lagarmitte and Suraj Kalati (HSBC) to consider how corporates’ attitudes to...


HSBC’s Sibos Spotlight: The ESG Landscape – what every treasurer needs to know

In the third edition of HSBC’s Sibos Spotlight Podcast series, TMI’s Eleanor Hill invites Farnam Bidgoli (HSBC) to provide an in-depth overview of the current ESG...


The Path to Transformational Global Cash Visibility

Davina Bradley (CEVA Logistics) and Conor Deegan (CashAnalytics) join TMI’s Eleanor Hill to explore how treasurers can transform their cash visibility and forecasting within their business in a matter of weeks using a...


HSBC’s Sibos Spotlight: Embedding ESG in Trade and Supply Chains

In the second podcast from HSBC’s Sibos Spotlight series, TMI’s Eleanor Hill speaks to Surath Sengupta (HSBC) about embedding ESG into trade and supply chains....


Lost in Transaction: Overcoming Payments Pitfalls

From simple errors to duplicates, fraud and sanctions violations, there are a number of areas where payments can go wrong – especially in the real-time environment. In this podcast, TMI speaks to Andrew Ferrao...


HSBC's Sibos Spotlight: Central Bank Digital Currencies

The first edition of HSBC’s Sibos Spotlight series sees TMI’s Eleanor Hill joined by Mark Williamson and James Pomeroy (HSBC) to discuss the hot topic of Central Bank Digital Currencies (CBDCs). Our guests discuss...


Payments Vision 2025: The Inside Track

Wim Grosemans, Steven Lenaerts (BNP Paribas) and Wim Raymaekers (SWIFT) join TMI’s Eleanor Hill to outline their vision for the payments landscape in 2025. Our guests consider how recent developments such as instant...


Stepping Out from the Shadows

“Treasurers needs to step out of the shadows and into the sunshine in terms of their strategic contribution.” claims Zitah McMillan, Co-Founder and CEO, Predictive Black. In this podcast, hosted by TMI’s Eleanor Hill, our guest declares that the...


Why the ‘One Size Fits All’ Approach is Outdated - A Cash Segmentation Treasury Masterclass

With the ongoing low interest-rate environment and increasing regulatory change, it’s more important than ever for treasurers...


Instant Payments: Instant Rewards

TMI’s Eleanor Hill sits down in the virtual TreasuryCast studio with J.P. Morgan’s Global Head of Real-Time Payments, Cyrus Bhathawalla, to discuss how treasurers can capitalise on the evolving nature of real-time payments. Our guest contemplates the elements...