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HSBC Bangladesh uses blockchain technology in order to import 20,000 tons of fuel oil from Singapore

According to cointelegraph.com on November 03.2020, the Bangladesh branch of global banking firm HSBC has directed the country’s first blockchain-based letter of credit (LC) transaction on the Contour DLT platform.

The transaction was used to resolve the importation of 20,000 tons of fuel oil from United Group’s Singapore subsidiary United Mymensingh Power.

HSBC Bangaladesh’s chief executive, Md Mahbub ur Rahman noted:

“I believe this will usher in a new era of routing international trade transactions as businesses and governments recognize transparency, security and swiftness in performing tasks using blockchain technology.”

According to Global payments service SWIFT, Bangladeshi trades using LCs were worth more than $34 billion during the first half of 2020.

United Group’s managing director, Moinuddin Hasan Rashi, mentioned:

“Fuel oil LCs are highly time-sensitive where every second counts and we believe this blockchain technology will help to manage time efficiently and also ensure increased efficiency and better cost management.”

Contour is a blockchain platform built using R3’s Corda, which connects financial institutions and corporate entities in a decentralized network. 

Contour is owned by eight financial institutions inclusive of HSBC, ING, Citi, Bangkok Bank, BNP Paribas, Standard Chartered, SEB, and CTBC.

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