HDBank of Vietnam has joined the Contour blockchain letter of credit (L/C) platform to increase its ability to extend trade financing to more corporates.

The bank says the addition of the Contour's blockchain-based network further strengthens its trade finance offering.

Improved L/C processing

HDBank is one of the first financial institution to join Contour, which up until its commercialisation earlier this year was called Voltron.

The bank says joining Contour offers an opportunity for Vietnamese corporates to take advantage of online negotiation and streamlined management of L/Cs with counterparties in Asia, Europe, the Middle East and the US.

Digital benefits

Built on R3's Corda platform, Contour's network is focused on overhauling the L/C issuance process.

Digitising L/Cs on a blockchain network is expected to significantly reduce processing times and costs.

High hopes

HDBank's CEO, Phạm Quốc Thanh, reckons Contour has the potential to "revolutionise" how L/Cs are issued.

He hopes it will provide "increased flexibility with L/Cs, streamlining the process and providing funds to corporates in a far more efficient manner than ever before."

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