Singapore-based DBS bank joins blockchain trade-finance network Contour, which digitalizes global trade processes along with the creation, exchange, approval, and issuance of letters of credit (LCs).
Built over R3’s Corda, DBS Bank has joined the blockchain trade-finance network, and with such a network, the bank expects decreased settlement time, reduced paperwork, and simplified processes. According to The Business Times of Singapore, DBS becomes Singapore’s first lender to enter blockchain firm R3’s Corda to provide an end-to-end letter of credit settlement to clients.
According to the website for Singapore-based Contour, other banks in the network include Bangkok Bank, BNP Paribas, ING, Standard Chartered, HSBC, and Citi Ventures.
DBS Looks Forward To Digitization For Efficiency
Through the platform’s blockchain solutions, Singapore-based multinational banking firm DBS Bank looks forward to digitizing its end-to-end letters of the credit settlement process. The bank aims at decreasing the amount of paperwork, reducing settlement time, and simplifying complex trading processing.
Moreover, the network will provide real-time tracking of transactions on the platform along with a full audit trail, which will add transparency and help resolve discrepancies more effectively.
According to John Laurens, group head of global transaction services at DBS Bank, “This is more than simply digitizing a historically paper-based service; it’s about transforming the way industries work by providing greater transparency, security, and speed to build sustainable trade ecosystems that are able to weather the peaks and troughs of economic cycles and are resilient in times of crisis.”
According to the Contour’s chief executive officer Carl Wegner “As more financial institutions join the beta network, it will be able to “showcase the full potential” that a blockchain solution can offer to trade finance.” He added that with the help of this blockchain network, banks and corporates could leverage the shared transparency and manage information digitally.
Remarkable Efforts Towards Digital Transformation
Contour blockchain had conducted a successful trial of its platform last year, where it recorded $30 million in letter-of-credit transactions. As the coronavirus continues to shake global markets, a regional executive reported that the platform could ensure commercial trades proceed smoothly even in times of crisis.
DBS has also launched the DBS Logistics Purchasing Card (DBS P-Card) in its efforts to promote the digital transformation of Singapore’s logistics sector amid the Covid-19 pandemic. It is a cashless purchasing card for the logistics sector that provides SMEs with a digital solution to settle payments and collections at container depots, thereby eradicating the hassle of the current manual, cash-based process.
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