Contour Announces Merger With DBS Bank For Digitizing Its Trade Settlement

The blockchain network, which has been created on R3’s Corda, would introduce its mainnet by the end of the year 2020.

The Business Times, a news outlet, has reported on May 11, that the Singapore-based bank is the very first bank in the country to get linked with the network.

Corporate Customers Of DBS Bank Can Use Contour’s Network

The business news outlet also mentioned that major organizations like BNP Paribas, Bangkok Bank, ING, Standard Chartered and Citi Ventures are the founding member of Contour.

With this collaboration, DBS Bank is hoping to digitize the end-to-end process of letters of credit settlement, as the Contour would help the bank to curtail the time of the whole settlement process, reduce the paperwork and simplify the trading process.

The corporate customer of the DBS Bank could also utilize the blockchain network for organizing a pre-issuance negotiation between applicants and beneficiaries, in real-time. This negotiation would enhance the certainty of the issued letters of credit.

The bank could resolve its error and increase the transparency of its platform with the help of transactions’ audit trails and the real-time tracing facility provided by the blockchain network.

The group head of global transaction services at DBS Bank, John Laurens has recently said, “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.”

Contour Tests $30 Million Letter Of Credit Transactions

In the year 2019, the blockchain network had successfully tested its platform and recorded total $30 million transactions in the letter of credit.

Earlier, while preparing the trade finance system traditionally, human intervention was important and the process required piles of paperwork. And as of now, the world is dealing with the COVID-19 crisis, it has become more critical to prepare the system manually.

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