(rejected) Banking Giant Standard Chartered Puts Bangladesh On The Map with First-Ever Blockchain Transaction

Standard Chartered, a London-based multinational banking company, has conducted the first-ever blockchain transaction in Bangladesh through the issuance of a Letter of Credit for the trade between Viyellatex Ltd, a readymade garment exporter, and Viyellatex Spinning.

Paperless trade

A Letter of Credit acts as a bank’s guarantee that the seller will receive the stipulated payment from the buyer on time. Standard Chartered was, therefore, the issuing bank after Viyellatex Ltd imported textile items from Viyellatex Spinning.

The transaction was undertaken digitally through the Contour blockchain network that offers a distributed trade system.

According to the announcement:

“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 network is built on R3’s Corda blockchain, and it minimizes friction in global trade, eliminates administration costs, and boosts data transparency.

Deterring settlement risks

Naser Ezaz Bijoy, the CEO of Standard Chartered Bank Bangladesh, noted that the Contour blockchain system will be instrumental in minimizing settlement risks for its customers.

He acknowledged:

“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.”

By leveraging the blockchain network, Standard Chartered seeks to lessen the turnaround time needed in the Letter of Credit process. As a result, trading efficiency will be enhanced. 

This cutting edge technology is also being used to fill the tech talent void in Japan prompted by President Donald Trump’s visa ban. NEC Corporation, a Japanese multinational company, is piloting its blockchain app to assist corporate Japan to hire almost 2,000 Indian tech engineers.