Project DESFT to Empower MSMEs in Global Trade with Blockchain-Based Credentialsby Fintech News Singapore November 15, 2023
At the Singapore Fintech Festival 2023 (SFF 2023), the Solv Foundation announced the launch of Project DESFT, a blockchain-based digital credential platform. The initiative is a joint effort with the Monetary Authority of Singapore (MAS) and the Bank of Ghana (BOG), aiming to enhance the participation of micro, small, and medium enterprises (MSMEs) from developing countries in international trade.
Project DESFT is intended to address the challenges MSMEs face in validating their credentials in the global market. The platform includes several features: a holistic blockchain credential utility, decentralisation, a paired credential-token structure, versatility, and compatibility with Universal Trusted Credential (UTC) standards. It also incorporates regulatory technology and digital asset integration.
Supporting the project, Sopnendu Mohanty from MAS expressed optimism about its potential in aiding MSMEs.
“MAS has been collaborating with the Bank of Ghana to explore the creation and use cases for a Digital Economy Semi-Fungible Token (DESFT). We are supportive of projects which delve into DESFT. It is encouraging to see companies like Solv Foundation participate in this interesting development towards a functional solution,”
Dr Maxwell Opoku-Afari from the Bank of Ghana emphasised the significance of digital credentials in trade and financial services, highlighting the need for regulatory oversight.
“Through collaboration and partnership with MAS and Solv Foundation, we are exploring various applications of combining UTC, Decentralized Identity (DID), Verifiable Credential (VC), and ERC-3525 technologies, demonstrating tremendous flexibility and potential,”
stated Dr Maxwell.
Yan Meng, co-founder of Solv Foundation and one of the designers of the ERC-3525 standard, discussed the project’s potential in resolving real-world challenges, particularly in global supply chain management.
“Project DESFT’s use of ERC-3525 to tokenize Verifiable Credentials introduces ‘Controllable Transparency’, a departure from the ‘Radical Transparency’ typical of many blockchain solutions. This strikes an optimal balance between privacy and visibility,”
he pointed out.
Project DESFT is set to advance into its next phase, working with partners like Ample FinTech to expand its real-world applications. This phase will see the project integrating with other Bank of Ghana initiatives to support MSMEs in Ghana, enhancing their ability to participate in international trade and finance.
A panel including Yan Meng will discuss the new concept of Digital Economy Semi-Fungible Tokens on 17 November at SFF 2023’s Technology Stage.