Dutch company KBC and IT specialist Cegeka, along with various other companies, have announced the successfully testing of Digital Trade Chain (DTC), a blockchain solution that facilitates secure international trade between SMEs. Many SMEs are dependent on import and export to grow their businesses; however, unlike large companies who use documentary credit as a way of reducing the risks involved, SMEs often lack a suitable solution. DTC is continuing to be developed by KBC and Cegeka who are negotiating with additional parties to make the platform more widely available and easier to access.
KBC’s new Digital Trade Chain application is a digital platform for managing, tracking and protecting domestic and international trade transactions between SMEs, and simplifying trade finance. DTC links parties, KBC and the counterparty’s bank. The app registers the entire trade process from order to payment, displaying it in an at-a-glance flowchart and guaranteeing payment when all contractual agreements have been met. Due to blockchain technology, the platform is fully automated and available 24/7, so the order-to-payment process is much quicker than the traditional exchange of documents. It also requires far less back-office administration.