Standard Chartered Completes Blockchain Powered LC Transaction in Bangladesh
The London-headquartered Standard Chartered PLC, has successfully employed a blockchain platform to carry out a trade transaction involving Bangladesh, as per Newage.
Using the Contour blockchain network, the financial institution issued a Letter of Credit (LC) for a transaction involving garment exporter Viyellatex Ltd and Viyellatex.
LC is a credit instrument guaranteeing payment for the product shipped by a seller in case all shipping formalities are completed as per terms of the agreement.
The entire deal was completed without the use of paper and electronically via Contour’s network, which was built on R3’s enterprise level blockchain Corda. Contour network facilitates partakers to capitalize on the network to develop and renew trade info on a real-time basis for international distributed digital trading. It further stated:
“Contour improves data transparency, removes administration costs and reduces friction in global trade: all of this leading to an overall increase in efficiency and reduction in costs for all parties.”
Rezaul Hasanat, Group chairman and CEO of Viyellatex, said
“Blockchain technology will certainly increase trading efficiency and reduce turnaround time of the LC process. Hence, we are very happy and proud to collaborate with Standard Chartered Bank and become a part of the first trade transaction in Bangladesh using the revolutionary blockchain technology.”
It can be remembered that German banking and tech companies have used Corda’s blockchain platform to conclude a money market security deal worth €100,000.