Swedish fintech Enigio and China-focused blockchain consortium TradeGo have completed their first end-to-end digital trade transaction between Europe and China, following an integration of the two company’s systems.
The transaction follows a project to integrate Enigio’s trace:original software, which allows users to create and transfer digital title documents, with TradeGo’s electronic bill of lading (eBL) platform.
As a result, Sweden-based paper and pulp producer Global Forest Products was able to complete an export of goods to a wood pulp importer in Jinan, China, using only electronic documents.
As part of the transaction, global freight forwarding company Fr. Meyer’s Sohn Seaways issued an eBL to the Swedish exporter under English law, while a Chinese bank issued an LC with Lloyds Bank acting as advising bank.
Lloyds transferred the eBL and supporting documentation to the Chinese bank, which in turn transferred them to the importer electronically.
The transaction is compatible with the UNCITRAL Model Law for Electronic Transferable Records (MLETR), which provides a basis for giving digital documents the same legal standing as their paper equivalents, as well as digital eBL standards established by the Digital Container Shipping Association.
Enigio says the collaboration with TradeGo paves the way for further similar trades, providing “an interoperable digital channel for electronic trade documents, facilitating trade between Europe and China”.
“This live transaction shows the digital silk road for electronic trade documents is now open,” Enigio chief executive Patrik Zekkar tells GTR.
“Total import and export with China accounts for approximately US$5.9tn. This trade corridor with China is of major importance, and Enigio can now provide users with network coverage and reach, using trace:original electronic documents.”
Gwynne Master, managing director for trade and working capital at Lloyds, says the project “underlin[es] the importance of interoperability to drive the adoption of digital trade”.
Enigio adds that transactions along this route can now be completed within a day, rather than up to two weeks.
TradeGo’s commercial director, Steven Zhou, says: “The best part of this collaboration is that users in different regions can conveniently choose the solution provider which suits them, especially for banks, who don’t have to put much effort into accessing multiple platforms.”
Heiko Voigt, chief executive of Fr. Meyer’s Sohn, describes the trade as a “great milestone on our path to lead trade digitalisation”.
