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Vietnamese financial institution points its first letters of credit score on the blockchain


HDBank has processed its first L/C transactions since becoming a member of the Contour platform for worldwide commerce.

Main Vietnamese financial institution HDBank has now change into the primary financial institution within the nation to challenge letters of credit score, or L/C, utilizing blockchain expertise.

Based on a Jan. 6 report by native media outlet Việt Nam Information, the issuance, doc presentation and profitable fee of L/C on the blockchain marks a significant milestone on HDBank’s said purpose, to change into a “Glad digital financial institution”.

The members within the first transaction had been a neighborhood fiber importer and a Taiwanese yarn producer, together with the L/C advising financial institution in Taiwan.

Letters of credit score are vital paperwork in worldwide commerce, offering a assure from a creditworthy establishment, comparable to a financial institution, {that a} purchaser’s fee to a vendor will likely be obtained on time and for the correct quantity. In essence, the financial institution underwrites the fee.

Utilizing blockchain expertise for L/C has many benefits, comparable to providing a better stage of safety and a everlasting document of the transaction. It additionally reduces the time wanted to course of such transactions to a matter of hours.

HDBank joined the HSBC-backed Contour community for L/C again in Could 2020. As Cointelegraph reported, the R3 Corda-based platform obtained a industrial launch in Q2 2020, following a profitable trial in 2019.