StanChart Forms JV with Linklogis for Blockchain-Based Trade Finance Platformby Fintech News Singapore August 31, 2021
Standard Chartered has formed a joint venture with Linklogis, a supply chain finance technology solution provider in China, to establish a blockchain-enabled trade finance platform dubbed as Olea.
The bank said that Olea is a fully-digitised trade finance origination and distribution platform that aims to bring together institutional investors seeking opportunities in an alternative asset class with businesses requiring supply chain financing.
Olea’s rigorous risk analytics and secure platform offers investors access to investment options for returns that align with their risk profiles.
It claims to provide a radically transparent, speedier and hassle-free way to access working capital for supply chain participants regardless of size.
Headquartered in Singapore, Olea will be headed by Amelia Ng from SC Ventures, the venture unit of Standard Chartered, as its CEO.
She will be joined by Letitia Chau, the Vice Chairperson and Chief Risk Officer of Linklogis, as deputy CEO.
Standard Chartered and Linklogis’ collaboration began in February 2019 when both companies signed a memorandum of understanding to explore the co-creation of innovation solutions that will support the supply chain finance ecosystem.
They completed their first joint deep-tier supply chain financing transaction in August 2019, and have successfully executed several other transactions to date.
In January 2020, Standard Chartered announced a strategic investment into Linklogis, which marked its first investment in a supply chain platform in China.
“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.
Olea aims to disrupt today’s trade finance model by matching suppliers’ financing needs with alternative liquidity from investors seeking a compelling asset class linked to the real economy.”
Alex Manson, who heads SC Ventures said,
“Trade, and accordingly trade financing, are essential for sustainable economic growth, even more so as businesses emerge from the pandemic and lockdowns.
Olea brings together the strengths of Linklogis and Standard Chartered in this space and represents the next generation of supply chain financing, providing transparency and risk assessment of trade assets while fulfilling institutional demand for alternative investments.”
Featured image credit: Standard Chartered Bank