Standard Chartered Bank recently executed Bangladesh’s first blockchain transaction by issuing a letter of credit (LC) for readymade garments exporter Viyellatex over the Contour network. Viyellatex imported textile items from Viyellatex Spinning while the bank acted as the issuing bank for the applicant as well as the advising bank for the beneficiary of the LC.
Contour offers 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.
Built on R3’s Corda blockchain, Contour improves data transparency, removes administration costs and reduces friction in global trade, leading to an overall increase in efficiency and reduction in costs for all parties.
SCB is one of the founding members of Contour. Naser Ezaz Bijoy, chief executive officer of Standard Chartered 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.
“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,” KM Rezaul Hasanat, chairman and chief executive officer of Viyellatex Group, was quoted as saying by Bangla media reports.