Two Russian entities, S7 Airlines and Alfa-Bank, have completed and settled a letter of credit (L/C) transaction using blockchain or distributed ledger technology.

Deloitte provided legal support for this first L/C transaction in Russia to use this technology.

Smart contract

According to a statement issued by Deloitte, the two parties used a smart contract to open and execute an L/C from end to end.

Meanwhile, blockchain technology enabled participants in the deal, including service providers, to see the documentation relevant to their role in the transaction.

High visibility

Specified participants in the deal could also view the status of the L/C in the blockchain record.

Proponents of this new technology claim a single blockchain can embody all the necessary information in a transaction, which is updated almost instantly, and can be viewed by parties to the transaction simultaneously.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.