Asian Development Bank completes 1st blockchain transaction
Friday, 09 18 2020, Category: Technology, Country: Asia
Philippines headquartered Asian Development Bank (ADB) has completed its foremost letter of credit (LC) transaction utilizing the Standard Chartered-supported Contour blockchain network.
The trade was one of the initiatives under the ADB’s trade and supply chain plan, with the Bank for Investment and Development of Vietnam and Standard Chartered bank being other participants.
The trade settlement carried out by ADB also signaled the foremost blockchain powered trans-border LC deal between Thailand and Vietnam.
As per Global Trade Review report, the trade involved $50,000 worth plastics shipped to Vietnam’s Opec Plastics Joint Stock Company by Thailand’s SCG Plastics Co Ltd.
Even though ADB did not share precise details about the effectiveness of blockchain in the trade settlement, Steven Beck, head of trade and supply chain funding department of the bank, stated that the utilization of blockchain has improved trade efficiency, while minimizing risk and limitations to entry for SMEs in emerging regions of Asia.