Standard Chartered Completes First Letter Of Credit Transaction On Voltron Blockchain Platformbr>
Multinational banking and financial services firm Standard Chartered has completed its first cross-border Letter of Credit (LC) blockchain transaction in the oil industry.
In a press release, Standard Chartered announced that it has successfully executed a pilot transaction for PTT Group, PTT International Trading Pte Ltd and IRPC Public Company Limited using Voltron, which utilizes blockchain technology to resolve an issue concerning the long process of paper-based letters of credit exchanged between importers and exporters, and other parties including shipping companies and banks. The pilot involved shipment of an oil product from Thailand to Singapore.
“Standard Chartered was able to digitize and simplify the end to end exchange of information between all parties in the transaction on the Voltron platform, including the issuance, advising and negotiation of LC and presentation of documents,” the bank said. “As the documents were sent electronically, all trade participants can view real time updates on the progress of the transaction. This resulted in a significant reduction of processing time to less than 12 hours, in addition to achieving greater transparency and cost efficiencies across the supply chain.”
Samuel Mathew, Global Head, Documentary Trade Product Management at Standard Chartered Bank, said that this pilot transaction marks the first of many that will follow from their participation with Voltron to digitize trade and enhance the client journey.
“As our clients increasingly look to technology to address the challenges of today’s global trade environment, we are extremely optimistic and excited about the potential opportunities that Voltron brings to the industry with its demonstrated benefits in improved speed and reduced risks of settlement, as well as its flexibility in connecting banks, businesses and other third-party providers in its network,” Mathew said.
Jordane Rollin, Global Head of Digital Transformation, Trade Product Management at Standard Chartered Bank and Voltron Steering Committee member, said that as the consortium prepares for full commercialization of the network, they are continuously getting feedback from their clients via pilots to enhance Voltron with new features.
“We have also started to ramp up on our contribution to this initiative to expand its offering beyond Letters of Credit and become a new industry standard for digitised traditional trade,” said Rollin.