DBS joins blockchain network Countour to tap into the platform’s digitalized trade finance capabilities.
DBS becomes Singapore’s first lender to join blockchain firm R3’s Corda to provide end-to-end letter of credit (LC) settlement to clients. Via the Corda network, the bank expects shortened settlement time, reduced paperwork and simplified processes.
In addition, the platform also enables digitalized real-time negotiations, post-endorsement sharing with banks and real-time tracking of transactions with a full audit trail.
Joining Contour’s growing ecosystem of banks and partners aligns with DBS’s ongoing efforts to drive greater efficiencies in trade and unlock strategic value for its corporate customers, DBS said in a statement.
In the midst of an ongoing coronavirus pandemic, numerous banking sub-segments have been capitalizing on the opportunity for greater openness to digital solutions and an accelerated rate of adoption. Trade finance is no exception and any solution that can speed up cash flow collection in a secure fashion is likely all the more welcome in the current environment.
This is more than simply digitizing a historically paper-based service, said John Laurens, DBS’s group head of global transaction services. It’s about transforming the way industries work by providing greater transparency, security and speed to build sustainable trade ecosystems that are able to weather the peaks and troughs of economic cycles and are resilient in times of crisis.
DBS joins BNP Paribas, Bangkok Bank, ING, HSBC, Standard Chartered and Citi Ventures as other members of Singapore-based Countour’s blockchain trade finance network.