London-based bank and monetary services firm standard chartered has completed its 1st cross-border blockchain letter of credit dealing within the oil business with Thai state-owned oil giant PTT group.
On-chain letter of credit
Standard chartered announced that it’s effectively executed a pilot letter of credit (LC) managing for PTT group, PTT International Trading Pte Ltd and IRPC Public Company limited over the Voltronblockchain platform in an exceeding press release printed on its web site on Aug. 7.
Per the release, oil firms are usually dependent on letters of credit as a kind of short-term trade finance as the significant value of their cargo. Moreover, this reliance reportedly implies some downsides. Notably:
“This method is paperwork-intensive and needs up to 5 days for the delivery of those documents.”
The organization asserts that this pilot comprised of digitizing and improving the start to finish trade of information between all gatherings in a surpassing payload of an oil item from Thailand to Singapore.The provision, advising, and negotiation of LC and presentation of documents have all reportedly been managed on the Voltronblockchain platform.
Improvements in the letter of credit transactions
The parties involved within the deal were reportedly able to view real-time updates on the progress of the dealing that resulted in an exceedingly vital speed-up of the method, that has been over in below 12 hours.SupasachiHongsinlark, theManaging director at PTT commented on the development:
“The system can give a lot of visibility to observe trade finance flow in real-time, which is able to improve transparency and credibility for the trading process and therefore strengthen the link between our partners and stakeholders within the long-term.”
PTT’s annual revenue to be $60.5 billion, Crunchbase estimates.
As Top Market Group reported earlier on, standard chartered has completed its 1st joint blockchain-based supply chain finance transaction.
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