The bank has signed a memorandum of understanding with Singapore-based Tazapay to offer digital escrow on the Proxtera network.
Standard Chartered will work with Tazapay, a digital payments platform for cross-border trade among SMEs, to deliver digital escrow services to buyers and sellers looking to trade globally on Proxtera, according to an announcement on Thursday.
As part of the agreement, the bank will facilitate the opening of bank accounts required by Tazapay to receive and hold the escrow funds in both the buyers’ market and the escrow location, and enable the flow of funds to the sellers once Tazapay validates the escrow conditions for the release of funds.
«Important Step»
Philip Panaino, Standard Chartered global head of cash management, transaction banking, called the MoU an «important first step» in the bank's ambition to develop digital escrow as a universally trusted and accepted settlement method for trade and commerce.
The pilot transaction for the MoU will take place between Singapore and India after obtaining appropriate regulatory clearances, with more corridors to be added in due course, the announcement said.
Proxtera said the partnership will open up the network's reach to Sub-Saharan Africa, given the existing broad network that Standard Chartered has there.
Facilitating Cross-Border Trade
Business-to-business marketplace network Proxtera was launched in 2020 to carry out the Business Sans Borders program launched by the Monetary Authority of Singapore (MAS) and Infocomm Media Development Authority, aiming to reduce friction in cross-border trade, especially for small and medium sized enterprises (SMEs).
