Commerzbank has become the first German Bank to successfully carry out blockchain-based Letter of Credit (LC) transactions for its clients at its Singapore and Shanghai branches on the digital trade finance platform Contour
Commerzbank AG has announced it successfully conducted two live blockchain-based transactions on Contour, a digital trade finance platform.
The first Letter of Credit (LC) transaction was performed for the bank’s client, Ascentex Exim LLP, a Singapore-based textile trader. The LC was issued for a shipment of rubber threads from Thailand to Krungthai Bank.
Another transaction was carried out by the Bank’s China branch. In this case, Commerzbank acted as the issuing bank for Nanjing Iron and Steel Company, which imported raw materials from Hong Kong’s Jinteng International Co. The LC was advised by Hang Seng Bank.
The usage of Contour’s decentralised platform for these transactions resulted in significant time and cost savings. The platform leverages blockchain technology and advanced data analytics to offer a secure, transparent, and seamless ecosystem for managing trade finance processes.
For Commerzbank, it was also an important milestone on the path towards its commitment to digital innovation and innovative value-added solutions.
By leveraging the power of blockchain technology, the bank aims to “enhance efficiency, reduce costs, and provide greater accessibility to trade finance, ultimately enabling businesses to thrive in today’s rapidly evolving global marketplace.”
We have earlier reported that Lloyds Bank was preparing to move its trade finance documentation to blockchain.
