The ADB [Asian Development Bank], headquartered within the Philippines, has settled its first letter of credit [LC] transaction using the Standard Chartered-backed Contour blockchain network.
The trade was linked to ADB’s trade and provide chain programs and involved Standard Chartered & the Bank for Investment and Development of Vietnam.
ADB’s trade settlement also marked the primary blockchain-based cross-border LC transaction between Vietnam & Thailand.
In line with a recent official report by Global Trade Review, the trade involved a $50k plastics shipment sent from Thailand’s SCG Plastics Co Ltd to Vietnam’s Opec Plastics Joint Stock Company.
Although ADB didn’t specifically mention how blockchain added to the efficiency of the trade settlement, Steven Beck, the bank’s head of trade and provided chain finance, added that the utilization of blockchain has made trade more efficient while reducing risk and lowering the barriers to entry for little & medium-sized businesses within the developing regions of Asia.
Social distancing measures implemented globally due to the continued outbreak as it has proven the importance of trade digitization, driving several leading entities involved in international trade and supply chain to implement blockchain within a bid to digitize operations, put aside paperwork, thereby resuming businesses.
The London-based multinational banking firm Standard Chartered also conducted the primary blockchain-based trading within Bangaladesh, introducing the South Asian country to blockchain innovation.
As reported earlier, Australia’s National Blockchain Lead Chloe White from the Department of Industry had suggested that blockchain could help combat food & wine frauds that cost the nation almost $1.7 Bln each year.