Linklogis Inc. Collaborates with The BIS Innovation Hub and Standard Chartered to Launch Digital Trade Token Solution In a rapidly evolving global supply chain landscape, small and medium-sized enterprises (SMEs) play a vital role as engines of growth and innovation. However, accessing the necessary financing to fuel their operations has remained a significant challenge. Recognising the strategic importance of the SMEs and the staggering unmet trade financing gap, estimated at USD 1.7 trillion globally, the Bank for International Settlements Innovation Hub (BIS Innovation Hub), in collaboration with Linklogis, Standard Chartered, RD Technologies, and Simmons & Simmons, unveils 'Project Dynamo'.

This project delivered a visionary prototype leveraging the power of Digital Trade Tokens (DTTs) to empower SMEs and revolutionise the way financing is provided. 'Project Dynamo' represents a transformative solution, underpinned by cutting-edge technology, strategic partnerships, and a shared commitment to driving sustainable growth for SMEs. As highlighted in the project report titled ' Catalysing Innovation for SME Growth', released by the BIS Innovation Hub (Project Dynamo: financing small and medium enterprises in the digital age (bis.org), this ground-breaking prototype showcases a novel application of decentralised financial technology within the trade finance industry.

Conditional payments can be made by anchor buyers with DTTs, affording the SME suppliers, as the recipients of DTTs, unprecedented option to seek finance from institutional investors with such tokens before the fulfilment of the predetermined conditions. The report offers valuable insights into the legal, regulatory, and commercial considerations necessary for adoption, making it a useful resource for central banks, policymakers, standards-setting organizations and the financial industry. Drawing on its extensive experience in transaction banking, Standard Chartered, an institutional collaborator of the project, is committed to exploring innovative financing methods in support of the real economy growth worldwide.