Blockchain trade finance consortium Contour has announced a transaction on its blockchain network between Rio Tinto and Guangxi Shenglong Metallurgical (GMS).

Contour aims to digitise letters of credit (L/Cs) to allow banks and corporates improved efficiency and greater transparency by building connectivity and trust between all parties in the transaction.

New buyer

The transaction saw China CITIC Bank successfully process import L/C tasks on the Contour network to meet the needs of its client GMS.

As a result of the iron ore transaction GMS joins Contour as a new buyer on the network.

L/C improvements

Rio Tinto, together with its advising and presenting bank, DBS Bank, has been executing a steady pipeline of transactions on the network since May 2020.

Contour's CEO, Carl Wegner, is confident in the blockchain network's ability to improve L/C processing.

"Documentation for L/Cs, in their various forms, poses huge issues for those looking to improve efficiency. However, with a digital-first solution, we can improve the entire process, save money, and make the sector far more effective," he claims.

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