Standard Chartered Bank has successfully executed the country’s first blockchain transaction by issuing a Letter of Credit (LC) for Viyellatex Ltd over the Contour blockchain network.
Standard Chartered Bank acted as the issuing Bank for the applicant, as well as the advising bank for the beneficiary of the LC, said a press release.
The entire transaction was paperless and completed digitally through Contour’s network. Contour provides a distributed trade network enabling an enhanced degree of collaboration across the main elements of trade with all participants leveraging the network to create and renew trade data in real-time.
Built on R3’s Corda blockchain, 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.
As one of the founding members of Contour, Standard Chartered benefitted from Contour’s network which simplifies the LC process, delivering shorter settlement times, instant discrepancy resolution and simplified sanctions screening.
CEO of Standard Chartered Bank, Bangladesh Naser Ezaz Bijoy said, “We are extremely proud to introduce Blockchain technology in Bangladesh for trade transactions. It has been a privilege to partner with Viyellatex Group to initiate the first Blockchain enabled Letter of Credit in the country. We are very excited to offer our clients improved speed and reduced risks of settlement offered by platforms such as Contours. We recognize that our clients are increasingly looking for new solutions to address the need for greater efficiency, and that this milestone represents the first of many such transactions that will follow.”
Chairman and CEO of Viyellatex Group KM Rezaul Hasanat said at Viyellatex Group, they always strive to provide quality products and services on time.
“We recognize that innovation and digitization is key to remain competitive in today’s ever-changing global trade scenario. 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,” he added
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