Commerzbank has completed a blockchain-based Letter of Credit transaction for a client on the Contour digital trade finance platform.
Built on R3’s Corda, bank-backed Contour’s network focuses on eliminating the paperwork in the creation, exchange, approval and issuance of letter of credits.
Commerzbank completed the transaction for Ascentex Exim, a Singapore-based textile trader. The LC was issued for a shipment of rubber threads from Thailand to Krungthai Bank. In addition, Commerzbank's China branch also completed a blockchain-enabled LC transaction.
Contour says that its decentralised platform resulted in significant time and cost savings within this process.
Brigitte Réthier, divisional board member for institutional client and transaction banking sales, Commerzbank, says: "By leveraging the power of advanced technology, we aim to enhance efficiency, reduce costs, and provide greater accessibility to trade finance, ultimately enabling businesses to thrive in today’s rapidly evolving global marketplace.”