Open trade finance network Contour has announced the completion of the first yuan-denominated blockchain letter of credit (L/C) deal between Baosteel and Rio Tinto.

Standard Chartered and DBS participated in the deal that was supported by fintech firms, essDOCS and Chinasay.

Currency boost

The deal was also the first fully integrated paperless trade for Rio Tinto with a Chinese counterpart.

As the first such deal in the iron ore industry to be transacted in renminbi, the trade signifies an important step within the market for supporting the Chinese currency.

Chinsay facilitated

The trade was facilitate by Contour's partnership with Chinsay and its ICP platform, which provides the corporate workflow and data for the process, allowing companies to easily collaborate in one place.

The L/C issuance and approval of key contract terms was performed digitally while essDOCS managed the electronic bill of lading and other documentation through its CargoDocs service.

Accelerating trade

Rio Tinto, Baosteel, ship agent, shipowner, DBS and Standard Chartered collaborated to draft, approve, sign, issue, transfer and electronically present the eB/L and upload supporting documents.

This resulted in significantly reducing trade document turnaround times according to Contour.

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