Major Vietnamese bank HDBank has now become the first bank in the country to issue letters of credit, or L\/C, using blockchain technology.<\/p>\n\n\n\n
According to a Wednesday report<\/a> by local media outlet Viet Nam News, the issuance, document presentation and successful payment of L\/C on the blockchain marks a major milestone toward HDBank\u2019s stated goal to become a \u201chappy digital bank.\u201d<\/p>\n\n\n\n The participants in the first transaction were a local fiber importer and a Taiwanese yarn manufacturer, along with the L\/C advising bank in Taiwan.<\/p>\n\n\n\n Letters of credit are important documents in international trade, providing a guarantee from a creditworthy institution, such as a bank, that a buyer\u2019s payment to a seller will be received on time and for the correct amount. In essence, the bank underwrites the payment.<\/p>\n\n\n\n Using blockchain technology for L\/C has many advantages, such as offering a higher level of security and a permanent record of the transaction. It also reduces the time needed to process such transactions to a matter of hours.<\/p>\n\n\n\n HDBank joined<\/a> the HSBC-backed Contour network for L\/C back in May 2020. As Cointelegraph reported, the R3 Corda-based platform received a commercial launch in the second quarter of 2020<\/a> following a successful trial in 2019.<\/p>","protected":false},"excerpt":{"rendered":" Major Vietnamese bank HDBank has now become the first bank in the country to issue letters of credit, or L\/C, using blockchain technology. According to a Wednesday report by local media outlet Viet Nam News, the issuance, document presentation and successful payment of L\/C on the blockchain marks a major milestone toward HDBank\u2019s stated goal to become …<\/p>\n