Standard Chartered Unveils Successful Letter of Credit Transaction via Blockchain

Asia Blockchain Review
August 16, 2019
Standard Chartered Unveils Successful Letter of Credit Transaction via Blockchain

Standard Chartered Bank has revealed that it successfully piloted a letter of credit (LC) transaction using the Voltron platform. The test was conducted between subsidiaries of Thailand’s state-owned oil-and-gas firm PTT Group and involved oil shipments to neighboring Singapore.

Voltron, an open-industry blockchain platform, facilitated the project to improve processes related to LC issuances.

Digitizing Transactions via Distributed Ledger Technology

According to a report by Coindesk, the Standard Chartered Bank said in a statement that all processes were successfully carried out without any irregularities.

“Standard Chartered was able to digitise and simplify the end to end exchange of information between all parties in the transaction on the Voltron platform, including the issuance, advising and negotiation of LC and presentation of documents,” the bank stated.

Samuel Mathew, the bank’s Global Head of Documentary Trade Product Management, added that it has been working with Voltron to digitize LC transactions using blockchain.

“We are extremely optimistic and excited about the potential opportunities that Voltron brings to the industry with its demonstrated benefits in improved speed and reduced risks of settlement, as well as its flexibility in connecting banks, businesses and other third-party providers in its network,” said Mathew.

Blockchain Delivers Greater Transparency, Real-Time Results

Using blockchain to carry out LC transactions allowed stakeholders to access data involving the project in real-time, promoting greater transparency overall.

Traditionally, oil companies use LCs for short-term trade financing through a paper-based system. Generally speaking, this system has a turnaround time of five days for the transaction to be completed. 

By comparison, the Voltron  platform was able to complete the transaction in 12 hours, a vast improvement with profound consequences for the oil and logistics industries.

Source: https://www.coindesk.com


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

Related Article
Diamante Blockchain Introduces B2B Payments for Diamond Industry
Diamante Blockchain has introduced a B2B payment tool enabled by decentralized technology to address...

November 22, 2019

Canada’s Largest Bank to Enhance Blockchain Capabilities
Royal Bank of Canada, the largest commercial financial institution in the North American country, ha...

November 22, 2019

Vietnam to Adopt Blockchain for Smart City Project
Vietnam’s Ho Chi Minh City has disclosed its plan to adopt blockchain technology and artificial inte...

November 21, 2019

UPS Tracks Beef Shipment with Blockchain
International logistics provider UPS announced that it has shipped beef from the US to Japan, tracke...

November 21, 2019

We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us