Blockchain trade finance platform Contour has launched an initiative in Bangladesh to provide domestic letters of credit (L/Cs) for small- and medium-sized enterprises.

This will provide SMEs with better access to trade finance and allow them to manage working capital more effectively by speeding up L/C processing times Contour says.

Six month plan

Contour aims to onboard more than 50 corporates supported by Bangladeshi and international banks in the next six months.

Much of the Bangladeshi economy is driven by domestic trade and L/Cs are the one of the most popular trade payment methods in the country.

Focus on Bangladesh

Bangladeshi corporates and banks are keen adopters of blockchain technology for L/C transactions according to Contour, which says it has already made significant inroads having been the first to enter the market.

Last year, Contour says it facilitated both the first blockchain L/C in Bangladesh and the first execution of an interbank blockchain L/C by a Bangladeshi bank.

Earlier this year, a local bank executed the first ever cross-border Islamic blockchain L/C in Bangladesh on Contour.

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