Standard Chartered Bank completes Bangladesh’s first blockchain transaction
- The deal saw Standard Chartered Bangladesh issue a Letter of Credit for Viyellatex Ltd.
- The bank leveraged the Contour blockchain to complete this transaction.
- Per Viyellatex Group CEO, KM Rezaul Hasanat, the blockchain increases trade efficiency.
Standard Chartered Bank Bangladesh has completed the first-ever blockchain transaction in the country. A report unveiled this news on August 15, noting that the bank executed this deal after issuing a Letter of Credit (LC) for Viyellatex Ltd, a readymade garment exporting firm. Reportedly, the trade was paperless seeing as the bank leveraged the Contour blockchain to complete it.
According to the report, this deal saw StanChart act as the issuing bank for Viyellatex Ltd after the firm initiated a trade with for Viyellatex Spinning. On top of this, the bank served as the advising bank for the beneficiary of the Letter of Credit.
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Commenting on reaching this milestone, Naser Ezaz Bijoy, the CEO of Standard Chartered Bank Bangladesh 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.”
Using the blockchain to increase trading efficiency
Per the report, the Contour network runs on R3’s Corda blockchain to ensure data transparency, eliminate administration costs, and minimize friction in global trade. Combined, these features ensure high efficiency and cost-friendly trade.
The Standard Chartered Bank is reportedly one of the founding members of Contour. This crucial role has seen the bank benefit from the Contour network, which helps streamline the LC process, minimize settlement times, resolve discrepancies instantly, and simplify sanction screening.
KM Rezaul Hasanat, Viyellatex Group’s chairman and CEO 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.”
Ready for mass adoption
In the publication, Contour’s CEO, Carl Wegner said that the deal between the Standard Chartered Bank and Viyellatex Ltd proves that its blockchain provides a solution that is readily available for mass adoption. Before StanChart’s transaction, DBS, the largest bank in Singapore adopted the Contour blockchain to offers its customers fully digital end-to-end LC processes.