HDBank has signed as much as a blockchain community from Contour with the intention of bringing commerce finance into the digital realm.
The Vietnam-based financial institution is the newest monetary establishment to hitch Contour’s community with a view to streamlining the issuance of letters of credit score with using a blockchain and sensible contracts, native media reported on Tuesday.
Contour is a blockchain commerce platform constructed on R3’s Corda tech and designed to streamline transaction settlement processes. It rebranded from Voltron in late January 2020, naming R3’s Asia chief Carl Wegner as CEO within the run-up to a full industrial launch of its digitized letter-of-credit (LoC) service.
A letter of credit score refers to a proper letter from a financial institution that primarily ensures a purchaser’s cost to a vendor inside a particular timeframe. If for some motive the transaction fails, the letter obligates the financial institution to cowl the total quantity of the acquisition.
Traditionally, letters of credit score have been paper-based, which brings prices in each time and handbook processing. Placing the method on a blockchain is alleged to have the ability to streamline the method, permitting letters to be issued in real-time in a safe and personal method using course of automation offered by sensible contracts.
“The main focus with our community has at all times been to determine a impartial platform that each one various kinds of banks and corporates can use for commerce finance transactions,” Wegner mentioned in a press release.
“That’s the final intention of Contour, and it’s one thing we’re persevering with to see as we welcome HDBank into the community,” he added.
As of Dec. 31, 2019, HDBank had complete consolidated belongings of $9.89 billion, a year-on-year improve of 21.1%, and fairness of $878.eight million, in keeping with Vietnam News.
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