StanChart executes Bangladesh’s first-ever blockchain LC transaction

Standard Chartered Bank successfully executed the country’s first blockchain transaction by issuing a letter of credit (LC) for Viyellatex, an export-oriented apparel manufacturer, using contour’s blockchain network.

Blockchain enables exporters, importers and their respective banks to share information on a private distributed ledger. The trade deal can then be executed automatically through a series of digital smart contracts written in computer code that can be executed automatically once certain conditions are satisfied. The parties involved in the transaction can visualize data in real time on their devices and see the next actions to be performed.

Blockchains have been used to underpin cyber-currencies like bitcoin but many other possible uses in areas such as banking and supply chain are emerging.

Standard Chartered Bank acted as the issuing bank for the applicants as well as the advising bank for the beneficiary of the LC. The entire transaction was completed digitally through Contour’s network. Built on R3’s Corda blockchain, 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. The platform, which was designed to bring transparency and trust to interactions while maintaining privacy and security, ensures data is shared only with the parties that need to know.

Blockchain

N.B: Original post from 2020