Digital trade is advancing as legal and technical foundations take shape across major jurisdictions. The Model Law on Electronic Transferable Records (MLETR), developed by the United Nations Commission on International Trade Law (UNCITRAL), has progressed into active implementation. Bahrain adopted MLETR-based legislation in 2018 through its Electronic Transferable Records Law. Abu Dhabi Global Market (ADGM) implemented MLETR-aligned regulations in 2021. Paraguay enacted Law No 6822 in 2021 to support electronic transferable records, with implementation extending into 2022. Singapore amended its Electronic Transactions Act in 2021 to recognise electronic transferable records. The United Kingdom reinforced global momentum with its Electronic Trade Documents Act in 2023, granting electronic trade documents the same legal effect as paper. The Group of Seven (G7) also committed to enabling electronic transferable records under its shared digital trade principles. Industry bodies are aligning standards with these reforms. The Future International Trade Alliance (FIT Alliance) set a target for full electronic bill of lading adoption by 2030. The Digital Container Shipping Association (DCSA) introduced data and messaging standards for electronic bills of lading. The International Chamber of Commerce (ICC) advanced cross-platform application programming interface specifications through its Digital Standards Initiative (DSI). Electronic bills of lading (eBL) accounted for around 5% of global volume in 2024, with adoption rising as legal certainty increased. Interoperability has become essential for digital trade. Supply chains span logistics providers, inspection agents, customs systems and financial institutions that often rely on incompatible platforms. The International Organization for Standardization’s ISO 20022 model, common data schemas and aligned application programming interface frameworks support the reliable movement of structured information across borders. Digital documentation enables automation in verification and compliance. Machine-readable records reduce manual intervention and strengthen audit trails. These capabilities support conditional logic, where authenticated information determines the next action in a documentary process. The convergence of legal frameworks, standards and digital infrastructure is defining a more predictable, auditable and automated environment for documentary trade. Re-engineering documentary trade through transferable digital records Electronic transferable records are reshaping how documentary trade is executed. Borislav Ivanov-Blankenburg, Global Head of Documentary Trade and CEO for Central and Eastern Europe at Deutsche Bank, said many jurisdictions still required paper documentation. He noted that some countries were “still on… stamps… [and] want a seal,” illustrating the persistence of traditional requirements that prevent certain processes from shifting fully to digital channels. He explained that inconsistent legal recognition across borders forced exporters and financial institutions to maintain hybrid workflows. Sidharth Gupta, Head of Financial Institutions Group for Asia Pacific at Bank of America, said the uneven global adoption of MLETR continued to limit the pace of digital documentation. He explained that “most countries don’t actually recognise the transfer of titles digitally” and noted that only a small number of jurisdictions had implemented MLETR-aligned legislation. He cited progress in Singapore and the South Pacific and said Hong Kong, China and Japan were “in pretty advanced stages of adopting the framework,” but cautioned that legal reform alone was insufficient without broader industry uptake. Ivanov-Blankenburg stressed that harmonised interpretation of electronic documentation rules was necessary to scale digital trade. He emphasised that varying legal treatments created friction and limited the ability of institutions to operate consistent end-to-end digital processes across markets. He viewed cross-border regulatory alignment as essential for reducing operational inconsistency. Cost and accessibility remained barriers. Ivanov-Blankenburg highlighted that for smaller firms, “solutions that are out there… are too costly.” He pointed to modular approaches that allow companies to digitalise selected elements without rebuilding entire systems, supporting more inclusive participation in digital trade. Gupta added that adoption would accelerate once banks, corporates and logistics participants began operating on compatible digital frameworks. He said the ability to digitise instruments such as letters of credit, standby credits and guarantees depended on common rules being recognised across borders and on banks having confidence that title and enforceability would be preserved. He also noted that clients increasingly expected banks to support end-to-end digital journeys rather than isolated digitisation of individual documents. Digital records improve reliability in trade processes. Ivanov-Blankenburg explained that digitised documentation allows earlier identification of discrepancies and reduces manual checking. Structured information helps institutions detect issues sooner and accelerate the verification process. Digitised documentation also supports new liquidity structures. Ivanov-Blankenburg referred to the role of tokenisation in distributing exposures “to small parties,” highlighting its potential to broaden investor access. He regarded digital documentation as a foundational step toward using digital channels to expand liquidity distribution. Automating document verification and supporting programmable workflows Automation is reshaping document verification. Tsvetanka Nankova, Managing Director and Global Head of Sales for Institutional Cash and Trade Finance, Deutsche Bank, said artificial intelligence (AI)- enabled automated tools can handle an initial layer of document checks and flag issues for further review. She noted that automation reduces manual effort and allows skilled staff to concentrate on complex assessments. George Fong, Head of Trade Finance for Asia Pacific at Bank of America, reported that automation had become central to handling the scale and variability of documentary flows. He said the bank achieved “96.2%” straight-through processing in its open-account automation and delivered “a 40% reduction” in processing time for its supply-chain finance business. Fong explained that automated extraction, validation rules and documentary checks allowed operations teams to focus on exceptional cases rather than repetitive tasks. Nankova highlighted the variability of trade documentation and explained that clients often submitted documents in inconsistent formats. She emphasised that data quality remained a constraint and that automation would remain dependent on human oversight until document consistency improved. Workflow transparency is essential for control. Nankova said that digitised processes provide clearer visibility across documentary steps, strengthening auditability and supporting more predictable end-to-end flows. She viewed these capabilities as increasingly necessary for standardised governance across trade operations. Fong also emphasised that automation was becoming essential for maintaining the cost structure of trade finance. He noted that rising transaction volumes and increasingly diverse documentary formats meant manual processing could no longer scale. He said banks needed to design workflows that combined automated data extraction with programmable validation, reducing operational bottlenecks while maintaining control. Automation supports conditional logic. Nankova explained that structured data allows documentary steps to trigger subsequent actions more consistently, reducing manual handoffs and increasing process predictability. She viewed this as a key advantage of digitised workflows. Human expertise remains indispensable. Nankova stated that “having the human in the loop is critical, will remain critical for us,” underscoring that judgement-based review continues to be necessary in handling the variability of trade documentation. Automation, in her view, complements rather than replaces human capability. Borislav Ivanov-Blankenburg Global Head of Documentary Trade and CEO for Central and Eastern Europe at Deutsche Bank Tsvetanka Nankova Managing Director and Global Head of Sales for Institutional Cash and Trade Finance, Deutsche Bank Interoperability and the multi-party architecture of digital trade Interoperability defines the scalability of digital trade. Samuel Mathew, Managing Director and Global Head of Documentary Trade, Standard Chartered Bank, standardised application programming interfaces (APIs) enable participants to track documentation and access shipment information more easily. He explained that shared data increases transparency and supports faster decision-making across supply chains. Fong said a major barrier to digital adoption was the varying use of negotiable instruments and title documents across markets. He explained that a number of clients “do not currently use negotiable instruments or title documents,” which affected their readiness to adopt electronic equivalents. He added that for documents such as bills of exchange or electronic bills of lading to move across systems, “standardised formats” were required for interoperability, along with shared data conventions that allow platforms, banks, shippers and consignees to process information reliably. Mathew noted that fragmented digital systems often result in manual re-entry and duplicated effort. He stressed that consistent data exchange across logistics, inspection and financial platforms is essential to reduce delays and maintain documentary accuracy. Reliable data strengthens risk controls. Mathew explained that access to information from independent sources enables institutions to validate documents with greater accuracy, reducing exposure to fraud. He emphasised the role of structured data in reinforcing operational reliability. Interoperability also supports conditional execution. Mathew noted that direct access to structured data from carriers, inspection agents or customs systems reduces reliance on manual checks. He said that when such inputs flow automatically into trade-finance systems, documentary processes become more predictable and efficient. Gupta noted that stronger alignment between legal frameworks, platforms and data standards would determine the pace of scalability. He said the industry was moving towards a broadly aligned digital architecture but warned that the benefits of such systems would only be realised when “all participants in the value chain” could exchange structured, authenticated information without friction. Aligned standards support collaboration across multi-party supply chains. Mathew emphasised that consistent data models create a more dependable environment for documentary processes and support wider adoption of digital trade. Technology-platform approaches to digital documentation and compliance Technology platforms are modernising documentation and verification. Manish Joshi, Managing Director for Asia Pacific Middle East and Africa, Finastra, said trade continues to rely on extensive documentation, which creates opportunities for automation and standardisation. He explained that improved document management reduces errors and helps institutions identify fraudulent activity earlier. Digital documentation strengthens authentication. Joshi explained that digital records are easier to validate and track, enabling earlier issue detection and reducing reliance on manual review. Structured data supports more consistent verification. AI is increasingly supporting data extraction and classification. Joshi said these tools can handle the variability of trade documents more reliably, generating structured inputs that subsequent processes can use in a predictable way. Interoperability underpins platform effectiveness. Joshi highlighted that API connectivity allows documentation platforms to interact with logistics, compliance and financing systems, reducing manual intervention and supporting continuous workflow progression. Joshi also discussed the influence of emerging standards. He observed that as jurisdictions adopt MLETR-aligned frameworks, system design is adapting to generate digital documentation that can function across borders under these legal models. Samuel Mathew Managing Director and Global Head of Documentary Trade, Standard Chartered Bank Manish Joshi Managing Director for Asia Pacific Middle East and Africa, Finastra Connecting programmable models to liquidity, settlement and digital assets Settlement innovation is influencing the evolution of digital trade. Ashutosh Kumar, Managing Director and Head of Global Transaction Banking for Asia Pacific, Mizuho Bank, said tokenised deposits and distributed-ledger environments can improve the speed and reliability of settlement. He referred to internal proof-of-concepts that demonstrated faster processing and more accurate reconciliation within controlled networks. Fong described cases using smart-contract-based workflows that support conditional execution in Open Account transactions. He explained that clients can customize their predefined business rules which trigger actions such as payment release when verified digital documents data were received and matched. He emphasised that reliable data validation was essential for these models and said the combination of authenticated records and programmable conditions offered a path towards more efficient, event-driven settlement for other trade products. Kumar explained that programmable settlement tools must integrate with existing financial infrastructure to operate reliably across borders. He viewed this interoperability requirement as parallel to the needs of digital documentation. Conditional settlement supports closer alignment between documentary and financial flows. Kumar said payment triggers can be linked to inspection outcomes or delivery milestones, reducing settlement risk and supporting tighter control over trade-finance events. Real-time settlement improves liquidity management. Kumar explained that more predictable timing enables institutions to make funding decisions with greater precision and reduces the operational delays associated with traditional settlement processes. These developments illustrate how digital documentation and programmable settlement mechanisms can operate together to support emerging smart-contract models in trade finance. Gupta said the industry’s next phase would be defined by the broader deployment of digital documentation, platform interoperability and conditional execution. He observed that “the whole ecosystem is focused” on reducing friction and accelerating settlement and said consistent legal frameworks across Asia Pacific would support the shift towards smarter, more automated trade flows. Embedding sustainability, transparency and governance into digital trade flows Digital documentation strengthens the integration of sustainability information into trade processes. Lavinia Bauerochse, Global Head of Sustainable Finance for the Corporate Bank, Deutsche Bank, said sustainability assessments depend on reliable data and transparent reporting. She emphasised that institutions require clear information to measure performance and support financing linked to sustainability objectives. Bauerochse highlighted the challenges faced by smaller firms. She explained that digital tools streamline documentation requirements and help organisations submit structured information needed for sustainability-linked financing, improving accessibility. Sustainability metrics can be embedded within digital workflows. Bauerochse said measurable indicators are essential for linking financing terms to sustainability outcomes. Digital documentation provides the information infrastructure needed for consistent evaluation. Digital audit trails strengthen governance. Bauerochse explained that digital records improve traceability, supporting regulatory reporting and providing greater confidence in sustainability-related claims. Sustainability information is becoming integral to digital trade. Digital documentation enables more transparent and accountable financing structures along supply chains. Ashutosh Kumar Managing Director and Head of Global Transaction Banking for Asia Pacific, Mizuho Bank Lavinia Bauerochse Global Head of Sustainable Finance for the Corporate Bank, Deutsche Bank The foundations of digital trade are taking hold Digital trade is moving into an enforceable and operationally aligned phase. MLETR-based frameworks provide legal certainty for electronic documents. Industry standards support interoperable data exchange across platforms and borders. Structured records and automated verification enable predictable documentary flows. Programmable settlement tools align financial execution with documented supply-chain events. These developments form the basis of smart-contract-driven trade. Digital documentation, aligned legal frameworks and interoperable systems define the emerging infrastructure for scalable, transparent and data-driven supply chains.
