ITFA launches dDOC specifications for the digitization of guarantees and tradable instruments
Enigios trace:original is the first technology to meet the dDOC specifications.
The framework will reportedly use the block chain as proof of truth and not to store data.
The International Trade and Forfaiting Association (ITFA) has published dDOC specifications to help banks digitize their financial instruments, such as guarantees and bills of exchange. The chairman of the ITFA FinTech committee, André Casterman, shared this information in a short report on DLT in action.
In the publication, Casterman then disclosed details of the progress of the DNI initiative since its launch in Q3 2019. According to him, the dDOC specifications describe how advanced document technology can be used to create, manage and share original digital documents.
ITFA Chairman Sean Edwards explained why it is necessary to publish dDOC specifications,
“As the leading trade finance association, ITFA encourages regulators to embrace new technologies such as cloud computing, digital signatures and distributed ledger technology. We are today publishing the dDOC specifications as a vendor-independent framework for digitizing guarantees and tradable instruments using a mix of advanced technologies. We are working with early adopter banks and with an initial set of regulators around the world to adapt the guidelines to digital practices”.
The combination of three technologies
According to ITFA, the combination of the above technologies will result in the production of portable original documents that are compatible with all existing or future software capabilities and transport mechanisms. The organization further noted that dDOC specifications would often embed the block chain, but only as proof of truth, not as storage of business data.
Casterman explained how dDOC specifications work and said that banks need technologies that integrate seamlessly with existing ones, such as back office applications, front office portals and communication channels.
He added that SMEs will like the dDOC specifications because they prefer to adopt technologies that their selected banks offer them. In addition, the digitization of bills of exchange and guarantees via e-banking portals is a low-hanging fruit for SME-oriented originators. Therefore, any dDOC-compliant technology provider will help to achieve this feat in a white label process.
A strategic partnership with Enigio
The ITFA reportedly needed a partner to provide the technical requirements to underpin its technology. Therefore, the organization partnered with Enigio to use the company’s trace:original product as a solution to help track and secure the ownership of original documents.
Göran Almgren, CEO of Enigio, commented on the viability of their technology,
“We are confident that our DLT-based trace:original solution provides the most effective upgrade path from physical documents to digital originals because our technology not only mimics today’s physical document flows, but also provides the highest levels of security, integrity and traceability”.