Standard Chartered conducted the first-ever Blockchain transaction in Bangladesh by issuing a letter of credit (LC) for Viyellatex, an export oriented apparel manufacturer. The historic move was conducted using Contour’s blockchain network.
Standard Chartered Bank was the issuing bank for the applicant – Viyellatex Ltd – which is one of the leading readymade garment (RMG) exporters, imported textile items from Viyellatex Spinning – in the country.
The entire transaction was paperless and completed digitally through Contour’s network, the statement added.
“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,” said Naser Ezaz Bijoy, CEO of Standard Chartered Bank, Bangladesh.
“Standard Chartered Bank is very excited to offer our clients improved speed and reduced risks of settlement offered by platforms such as Contour,” said Naser.
“We recognize that our clients are increasingly looking for new solutions to address the need for greater efficiency, and that this milestone represents the first of many such transactions that will follow,” he added.
“At Viyellatex Group, we always strive to provide quality products and services on time. We recognize that innovation and digitization is key to remain competitive in today’s ever-changing global trade scenario. Blockchain technology will certainly increase trading efficiency and reduce turnaround time of the LC process,” said KM Rezaul Hasanat, chairman and CEO of Viyellatex Group.
“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,” said Hasanat.
Carl Wegner, CEO of Contour said: “Global trade lacks a solution that drives out inefficiencies, improves data transparency and enables interoperability between all trade participants. The long-established elements of trade finance don’t have sufficient integration, ultimately causing friction and unnecessary administration.”
These inevitably cause significant barriers for global trade growth, adding complexity, increasing cost and delaying the process for both banks and corporate, he added.
The Contour network can overcome these issues, providing a consistent and reliable infrastructure for global trade to flourish especially in countries like Bangladesh that counts on LCs for a significant part of their trade volumes, said Wegner.