Standard Chartered Bank has successfully executed the country’s first blockchain transaction by issuing a Letter of Credit for readymade garment exporter Viyellatex Ltd over the Contour blockchain network, said a press release.
Viyellatex Ltd imported textile items from Viyellatex Spinning. Standard Chartered Bank acted as the issuing bank for the applicant as well as the advising bank for the beneficiary of the LC.
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.
Standard Chartered Bank, Bangladesh CEO 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.’
Viyellatex Group chairman and CEO KM Rezaul Hasanat 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.’
Contour CEO Carl Wegner said: ‘The recent transaction with Viyellatex Ltd serves to prove that a solution is out there and readily available for adoption. It’s also hugely positive to have Standard Chartered introducing this revolutionary technology for trade in Bangladesh and we’re proud to be a part of the first transaction in the country.’ — New Age
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