HSBC Bangladesh has accomplished the nation’s 1st blockchain-powered cross-border trade settled using a LC (letter of credit) on the Contour DLT platform.
It is to be noted that the transaction was used to settle the importation of twenty thousand tons of fuel oil from United Mymensingh Power, the Singapore subsidiary of United Group, as per a report published by the Daily Star.
Md Mahbub Ur Rahman, the bank’s CEO described the transaction as displaying the bank’s commitment to supporting cross-border trade by means of cutting-edge tech platforms.
He commented, “I believe this will usher in a new era of routing international trade transactions as businesses and governments recognize transparency, security and swiftness in performing tasks using blockchain technology.”
Notably, Contour is a blockchain based platform constructed using R3’s Corda that joins financial organizations and corporate units in a decentralized trade finance network.
Contour is owned by 8 financial organizations. These include HSBC, Standard Chartered, ING, Citi, BNP Paribas, Bangkok Bank, SEB, and CTBC. The development of the platform started three years back in 2017. At the time, it was called “Voltron,” before beginning in closed beta the succeeding year.
The platform concluded its beta phase one month back. At the outset of 2020, 80 diverse units across seventeen nations tested the platform leading up to its commercial beta unveiling.
Remarkably, the blockchain based platform has also been used to settle a very large iron ore trade between China and Malaysia. Apart from that, Philippine-based Asian Development Bank also used Contour to execute the 1st cross-border blockchain based letter of credit transaction between Thailand and Vietnam.
What do you think about the increasing adoption of blockchain in cross border trade? Let us know in the comments below!