Singapore's DBS Bank has moved from blockchain trade finance provider Contour's beta network to its production network to offer streamlined digital letter of credit (L/C) transactions for customers in the Asia Pacific region.

The first Singapore-based bank to join Contour's beta network, DBS completed the first fully digital L/C transaction on the platform last year.

Digital efficiency

DBS will be able to provide a fully digital end-to-end L/C settlement process, including the transfer of electronic trade and title documents, for its customers in Australia, China, Hong Kong and Singapore.

This helps shorten settlement time, reduce paperwork and simplify complex trade processes according to Contour, which claims that network users have seen great efficiency gains, reducing the process of an L/C presentation by up to 90 per cent.

Sustainable solution

Contour says its decentralised network also reduces forgery and fraud opportunities as it validates all identities on its secure network and leverages its technology partners to match trade documents to real-time data, greatly reducing the chances of fraudulent activity.

This digital solution is also sustainable according to Contour. It says traditional trade uses trillions of pieces of paperwork and millions of courier legs which has a significant impact on the environment. Contour offers a cleaner, more efficient and sustainable option that allows companies to reduce their carbon footprint.

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