DBS Joins Blockchain Trade Finance Network Contour
(15 May 2020 – Singapore) DBS has become the first Singaporean bank to join Contour's network, which is built on R3's Corda and digitalises global trade processes including the creation, exchange, approval and issuance of letters of credit (LCs).
Other banks in the network include Citi Venture, HSBC, ING, Standard Chartered, BNP Paribas and Bangkok Bank. Contour’s network was launched in January following live pilots in 14 countries and a global trial involving more than 50 banks and corporate which demonstrated the platform's ability to reduce the time it takes to execute the entire process of paper-based LCs from 5-10 days to under 24 hours.
The move will enable DBS to tap on Contour’s digital solutions to provide a fully digital end-to-end LC settlement process for its customers, including the transfer of electronic trade and title documents.
Corporate customers can also conduct digital pre-issuance negotiation between applicant and beneficiary in real-time, and share this with the bank post-endorsement for LC issuance. The platform also offers real-time tracking of transactions, along with a full audit trail.
“This is more than simply digitising a historically paper-based service; 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” said John Laurens, Group Head of Global Transaction Services, DBS.