Coinsilium Group, which describes itself as a blockchain venture builder, advisor and investor, has signed an advisory partnership agreement with LC Lite, a firm developing a letter of credit (L/C) platform that aims to connect buyers and suppliers on a single online system.

London-based Coinsilium said it would support LC Lite in aspects of transaction preparation and execution.

Simple digital system

LC Lite is seeking to develop a digital L/C platform for importers and exporters on which businesses can issue, amend and confirm L/Cs.

The platform is designed to offer a simple and cost-effective digital system.

Eliminate intermediaries

LC Lite claims the platform will eliminate the role financial institutions currently play as intermediaries in the L/C issuance, amendment and confirmation processes.

The elimination of financial intermediaries aims to reduce data flows, process complexity, time consumption and overall costs for end-users.

SWIFT bypass

The developers also say the new platform will bypass the traditional SWIFT messaging system.

One of the platform's key features according to the developers is that it will let exporters and importers approve documents directly between themselves, with those exchanges executed via smart contracts recorded on a blockchain.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.