Hanoi, Vietnam, 13 August 2026 – As global trade continues its rapid digital
transformation, governments and regional economies are accelerating the development of
Digital Trust Infrastructure to enable trusted, verifiable cross-border transactions.
PILA (Vietnam) and TOTM Technologies (Singapore) have signed a Memorandum of
Understanding (MOU) to jointly advance the development of Cross-border Digital Trust
Infrastructure across ASEAN. The collaboration will establish a trusted digital
verification foundation for cross-border transactions, enabling digital trade, reducing
verification costs, and strengthening trust among businesses, financial institutions and
regulatory authorities.
Vietnam and Singapore Advanced the Adoption of Verifiable Credentials for Cross-Border Trade
As the first implementation under this long-term collaboration, the two companies will
jointly research and develop a Proof of Concept (PoC) applying Verifiable Credentials
(VCs) to Letters of Credit (L/Cs) between participating banks in Vietnam and Singapore.
The initiative will be built on the Infocomm Media Development Authority (IMDA)’s
TradeTrust framework, enabling both companies to establish a trusted digital trade
corridor between the two countries.
The First Initiative: Faster, Independent L/C Verification – Without Changing Any
of the Existing Legal Procedures for L/Cs
Letters of Credit (L/Cs) remain one of the most widely used and important payment
instruments in international trade. However, verifying an L/C issued by a foreign bank
often requires banks to make phone calls, check information through SWIFT, and
exchange and reconcile supporting documents with the relevant parties. This multi-step
process can take several days, increase costs, and create potential risks of errors or fraud.
To enhance verification efficiency without changing the existing L/Cs operating model,
PILA and TOTM Technologies will jointly develop a Proof of Concept (PoC) applying
VCs to L/Cs transactions between participating banks in Vietnam and Singapore.
Under the PoC, VCs will be introduced as a Trust Layer that operates alongside existing
L/Cs workflows, enabling trusted verification while preserving current legal frameworks,
banking procedures and payment obligations.
For example, when a participating bank in Vietnam issues a L/Cs, it simultaneously
issues a VCs attesting to the authenticity of the L/C. This enables other participating
banks to verify the issuer and the integrity of the information.
When the L/Cs and its accompanying VCs are received by a participating bank in
Singapore, the receiving bank can immediately verify the issuer, document integrity and
authenticity through a TradeTrust-compliant verification mechanism, significantly
reducing the need for manual document reconciliation and verification.
VCs serve solely as a verification mechanism. They do not create any payment
obligations, replace L/Cs, or alter the legal responsibilities of the parties under
applicable laws and established practices. As they operate entirely outside the legal
framework governing L/Cs, the solution can be tested and further scaled based on trust
and technology, without requiring any legal changes to the L/C itself.
Under the partnership:
● PILA operates the VC issuance and verification infrastructure in Vietnam through
NDAKey, built on blockchain technology that provides a trusted registration and
verification layer for validating the issuer, status, and integrity of the information.
● TOTM Technologies serves as the technical capability provider and domain
subject matter expert, integrating the solution with IMDA’s TradeTrust framework
while contributing its expertise in blockchain, biometric identity, and product
traceability.
This initiative aims to shorten document verification times, reduce manual reconciliation,
and establish a network of participating banks in Vietnam and Singapore that can trust
one another through a shared infrastructure for cross-border transactions.
The Cross-border Trust Bridge for Digital Trade Transaction between Vietnam and Singapore
Building an ASEAN Digital Trust Network
The Letter of Credit initiative is the first phase of a broader roadmap. Building on the
trust foundation established through this phase, the two companies intend to explore
further areas of collaboration across ASEAN, including Digital Product Passports (DPP).
By combining PILA’s traceability infrastructure with TOTM’s product identity and
interoperability capabilities, the partnership aims to deliver trusted, verifiable Digital
Product Passports across the Vietnam, Singapore and Indonesia trade corridors, helping
exporters meet compliance requirements in key international markets.
In addition, the two companies will explore the development of trusted Cross-Border
Payment Settlement infrastructure through engagement with regulators and participation
in regulatory sandboxes. The initiative will initially focus on Vietnam, Singapore, and
Indonesia before expanding across ASEAN. These initiatives will be pursued in
accordance with the regulations of each respective country and with the participation of
regulators, financial institutions, and other relevant stakeholders, including potential
participation in controlled testing environments (sandboxes) where applicable.
The initiative reflects a shared vision to advance Digital Trust Infrastructure for
cross-border trade. This aligns with the broader goals of ASEAN’s Digital Economy
Framework Agreement (DEFA), which seeks to promote digital trade, facilitate trusted
cross-border data flows, and enhance electronic payments and electronic transactions
across the region.
Chan Wei Jie, Group CEO & Board Director of TOTM Technologies said:
“As the world embraces multipolarity and economic fragmentation, it’s more important
now than ever that Southeast Asia is united and inter-connected as an economic region.
Trusted Infrastructure, backed by sovereign identity verified credentials, remains
fundamental in driving sustainable cross border commercial models.”
Nguyen Phu Dzung, Chief Executive Officer of PILA, said:
“The next phase of the digital economy will be defined not only by connectivity, but by
trust. As digital identities, electronic credentials and data become securely verifiable and
recognised across borders, digital transactions will become faster, more transparent and
significantly more efficient. This is the long-term vision driving PILA’s commitment to
building Cross-border Digital Trust Infrastructure – not only for Vietnam, but for a more
connected and interoperable ASEAN.”
By combining PILA and TOTM’s capabilities in developing and operating Digital Trust
Infrastructure with their deep understanding of the respective markets across the region,
the two companies aim to establish trusted digital trade corridors across ASEAN.
Reference Images: Click here
About PILA
PILA Group Joint Stock Company is a Vietnamese technology company focused on
researching and developing digital trust infrastructure platforms and solutions, including
blockchain, decentralized identity, verifiable credentials, traceability, and services
supporting electronic transactions.
Website: https://pila.vn/
NDAKey: https://www.ndakey.vn/vi
About TOTM Technologies
TOTM Technologies Limited (SGX: 42F) is a trusted technology group building secure
digital infrastructure across digital identity, artificial intelligence and quantum-safe
technology.
Website: https://www.totm-labs.com/
About TradeTrust
TradeTrust is a technical framework developed by IMDA to support the verification,
exchange, and interoperability of electronic trade documents among parties involved in
transactions.
Website: https://www.tradetrust.io/