In a first, Standard Chartered has conducted Bangladesh’s first blockchain trade transaction using Contour’s blockchain network, as reported by Newage on August 16, 2020.
To conduct the trade transaction, the British multinational banking and financial services firm issued a Letter of Credit (LC) for the readymade garment exporter Viyellatex Ltd., which imported textile products from Viyellatex Spinning.
The bank acted as the issuing bank for Viyellatex Ltd. and as the advising bank for Viyellatex Spinning. It was reported that the entire transaction was made digitally over Contour’s blockchain network.
Contour’s blockchain network, which is built on R3’s Corda blockchain, provides a distributed trade network for all the parties, enabling them to both create and renew trade transactions in real-time.
Contour is the perfect tool for global distributed digital trading, for it increases data transparency, reduces friction in trade, and eliminates administration costs.
Standard Chartered relies on Contour’s blockchain network for benefits like the simplified LC process, improved settlement speed, swift resolution of any sort of discrepancy, and simplified screening of sanctions.
According to Viyellatex Group CEO K.M. Rezaul Hasanat, Viyellatex’s collaboration with Standard Chartered helped it complete the country’s first trade transaction. Standard Chartered’s revolutionary blockchain technology led to efficient trading as well as the reduction in turnaround time of the LC process, he said.
Naser Ezaz Bijoy, CEO of Standard Chartered Bank in Bangladesh, expressed his joy over partnering with Viyellatex Group and conducting the country’s first Blockchain-enabled LC. Contours is a great platform for clients looking for efficient trading with reduced risks of settlement, he added.
Contour CEO Carl Wegner believes that factors like trading inefficiencies, lack of data transparency, and friction in trade act as barriers for growth in global trade. Moreover, they increase administration costs and delay the transaction process for both banks and businesses involved.
With a consistent and reliable infrastructure, Contour has established itself as a one-stop solution for all trade partners to conduct trade transactions globally, said Wegner.
Standard Chartered’s Blockchain-based transaction with Viyellatex Ltd. is the best example of how countries like Bangladesh can benefit from LCs for their trade, he added.
