HDBank handled its first L / C transactions since joining the Contour platform for international trade.
The first bank in the country
The major Vietnamese bank HDBank became the first bank in the country to issue a letter of credit or L / C using blockchain technology.
According to a report published by local media outlet Vietnam News on Jan. 6, the publication of L / C on the blockchain, document submission and successful payment is an important milestone on the way to becoming a “happy digital bank”, which is the stated goal of HDBank. pointing out.
Participants in the first transaction were a local fiber importer and a Taiwanese yarn manufacturer, as well as the L / C consulting bank in Taiwan.
What do letters of credit mean?
Letters of credit are important documents in international trade and provide a guarantee that a buyer from a highly credible institution such as a bank will receive the right amount on time for a payment to a seller. Basically, the bank makes the payment.
Using blockchain technology for L / C has many advantages, such as offering a higher level of security and a permanent record of the transaction. It also reduces the time required to process such transactions to a few hours.
HDBank joined the HSBC-backed Contour network for L / C in May 2020. The R3 Corda-based platform received a commercial launch in the second quarter of 2020, after a successful trial in 2019.