Standard Chartered, a British multinational banking and financial services company, has successfully leveraged blockchain technology to conduct Bangladesh’s first blockchain trade transaction.
On August 16, it has been reported by Newage that the Standard Chartered bank issued a Letter of Credit (LC) for the trade between garment exporter Viyellatex Ltd and Viyellatex Spinning on the Contour blockchain network. LC is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount.
Standard Chartered Bank leverage blockchain for trade transactions in Bangladesh for the first time https://t.co/5lRcG0APBC — Cointelegraph (@Cointelegraph) August 16, 2020
However, the entire transaction was reportedly paperless and completed digitally through Contour’s network. Contour’s blockchain network builds on R3’s Corda blockchain and enables all participants to leverage the network to create and renew trade data in real-time for global distributed digital trading.
It added:
“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.”
Thus, KM Rezaul Hasanat, the chairman and CEO of Viyellatex Group, 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.”
Source: Cointelegraph | Image: Kryptomoney