British banking institution and financial firm Standard Chartered is experimenting with Blockchain trades in Bangladesh. The bank, based in London, issue a Letter of Credit backed by the Contour blockchain technology. A letter of credit is an agreement between two parties guaranteeing payment to the receiver of the amount mentioned. It is basically a letter that a bank issues which the buyer can raise a claim against. The bank is liable to pay the buyer the guaranteed amount that has been decided, even in case the seller defaults on the payment or is unable to honour the transaction.
The transaction was executed electronically and in an environment-friendly manner not involving the use of paper-based ledgers or accounts. The trade was registered on a global distributed ledger based on the Corda blockchain.
CryptoTrends reach out to officials at Viyellatex Group, one of the parties involved in the transaction. Their Marketing Head commented
We are firm believers of blockchain technology. This is a big win for Bangladesh’s high-tech industry. standard chartered shall be remembered as the pioneer of enterprise blockchain solutions within the country
