Thailand’s Standard Chartered completed its first cross-bank Letter of Credit (LC) transaction between Vietnam and Thailand conducted over blockchain between Vietnam and Thailand.
The transaction was done in partnership with Asian Development Bank (ADB) and the Bank for Investment and Development of Vietnam (BIDV). It also marks the completion of ADB’s first credit guarantee using distributed ledger technology.
The transaction was completed over Contour’s network, a blockchain-based open industry platform focused on digitising trade finance, and involved a US$50,000 shipment.
ADB’s Head of Trade & Supply Chain Finance Steven Beck, said:
“The coronavirus pandemic has shown that it is essential the trade finance industry quickly digitises operations to make global trade and supply chains more resilient and robust. This innovation makes trade more efficient, reduces risk and lowers barriers to entry for small and medium-sized businesses in developing Asia.”
Sam Mathew, Global Head of Documentary Trade, Standard Chartered, added:
“As one of the founding members of Contour, we are delighted to have co-created this new credit guarantee module with ADB and Contour. The success completion of this pilot marks another remarkable milestone in our journey towards transforming documentary trade with risk participation weaved into the blockchain platform. We believe this added capability will help to drive scale and adoption in the industry, as well as increase operational resilience for both our clients and partners.”
Featured image: Chartered Bank