The partnership aims to establish a reliable digital verification platform for cross-border transactions, helping accelerate digital trade, reduce verification costs, and strengthen trust among businesses, financial institutions, and regulators.

As an initial step, the two companies will launch a Proof of Concept (PoC) using Verifiable Credentials (VCs) as an additional digital trust layer for the Letter of Credit (L/C) process between Vietnamese and Singaporean banks.

The initiative will be built on the TradeTrust technical framework developed by Singapore’s Infocomm Media Development Authority (IMDA), laying the foundation for a trusted digital trade corridor between the two countries.

The first application will enable faster, independent and tamper-proof verification of L/Cs without changing existing legal procedures governing L/C transactions.

At the heart of the model is the ability to verify information without requiring the verifying party to connect directly with the issuing party. Instead, verification is supported by a shared trust infrastructure, allowing information to be checked independently and without relying solely on bilateral connections between individual banks.

Under the partnership, PILA will operate the VC issuance and verification infrastructure in Vietnam through NDAKey, using blockchain-based infrastructure to support verification of the issuer, the status of credentials and the integrity of the information.

TOTM Technologies will provide technical capabilities and market expertise in Singapore, integrating the solution with IMDA's TradeTrust framework and drawing on its experience in blockchain, digital identity and traceability.

The approach is intended to reduce verification costs and improve trust among businesses, financial institutions and regulators involved in cross-border transactions.

Building on the infrastructure established during the initial phase, the two companies plan to expand the partnership into additional sectors and markets across ASEAN.

One key area will be the Digital Product Passport (DPP), which could help businesses engaged in trade among Vietnam, Singapore and Indonesia meet international requirements for product traceability.

The companies also plan to develop digital-trust-enabled cross-border payment infrastructure, initially connecting Vietnam, Singapore and Indonesia before expanding the model across ASEAN.

In the longer term, the partnership seeks to strengthen digital connectivity across ASEAN in line with the objectives of the ASEAN Digital Economy Framework Agreement (DEFA), including the promotion of digital trade, secure cross-border data flows, electronic payments and interoperability among member economies.

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