TL;DR Breakdown
- HDBank issues its first blockchain-based letter of credit
- The bank joins the likes of HSBC in using this technology
HDBank, one of the biggest banks in Vietnam has broken a record in the banking history of the Asian country. The bank, using blockchain technology, has issued a letter of credit (L/C).
According to a report that emerged earlier this week, the successful payment of the Letter of credit plus the issuance of the necessary documents is a record-breaking feat for the bank. This is in line with HDBank’s mission of becoming a “happy digital bank.”
The bank had issued this letter on behalf of a local fiber importer who was writing a yarn manufacturer in far away Taiwan. Another key player in the transaction is CTBC, who acted as the L/C advising bank in Taiwan.
According to the report, the bank was using a blockchain-based L/C because it gives more layers of protection to users than the conventional method. Not only that, this form of L/C is also quicker and more efficient as it reduces the need for paperwork while also cutting out the probability of the occurrence of errors.
HDBank aims to continue to use technologies to provide their clients with a better and safer transaction method.
HDBank joins the likes of HSBC in issuing a blockchain-based LC
You will recall that Cryptopolitan had earlier reported how Hongkong and Shanghai Banking Corporation Limited (HSBC) had also issued a Letter of Credit through Contour, a blockchain platform.
According to the report, HSBC had used the LC to pay for over 15000 tonnes of fuel oil that was imported by United Mymensingh Power.
HSBC Bangladesh made use of the LCto make payment for over 15,000 tonnes of fuel oil that was imported via The company is a subsidiary of the popular company, United Group.
The bank’s chief, Md Mahbub ur Rahman, in his statement had said that blockchain-based transactions would unlock a new level of transactions between different countries and businesses. He further added that this pioneer blockchain-based trade has shown that subsequent transactions would be faster, secured and transparent which would inevitably aid the growth of the sector.
