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Citi Jumps On The Bandwagon Of Blockchain For Trade Finance Business
Many global banking giants have been on top of blockchain technology in the recent past and already begun deploying the new technology for some of their core banking businesses, just like trade finance, custody services, trading and their own crypto-projects etc.
Trade finance is one domain of conventional banking practice that looks aggressively as to how blockchain can bring a paradigm shift in its business. And, of late, trade finance business and blockchain seem to be making the best combination in the advance era of technology and finance.
With that said, the renowned global banking giant, ‘citibank’ appears to be in the news of its investment in ‘Contour’ which is the blockchain-driven trade finance network, as per the announcement.
Contour has unveiled the support of major banks such as HSBC and ING. Now, the blockchain-based global trade network can add Citi to its growing list of partners.
HSBC also performed the first blockchain-based letter of credit transaction denominated in Chinese yuan. The transaction has successfully been executed for the Voltron trade finance blockchain platform which has been developed by the consortium of eight banks, in association with the renowned banking names like, BNP Paribas and Standard Chartered also, as per the reports.
Carl Wegner, CEO, Contour said: “Seeing greater collaboration from leading financial institutions shows how important revolutionising the trade finance network is. With international trade being of such significant importance for the global economy, with trillions of dollars’ worth of goods in circulation, proper financing is vital for its continued growth. Our network provides trusted information in real-time, digitising the process for all users. To have a major global trade player such as Citi join us is a huge validation of the work we are doing and allows us to continue creating greater efficiency for the industry.”
Luis Valdich, Managing Director of Citi Ventures said: “The Contour team has a trusted background and is partnering with a strong consortium to help digitize Letters of Credit. Citi Ventures is thrilled to support Contour as it pursues its exciting vision.”
Contour’s network with R3’s Corda blockchain and a growing partner ecosystem, targets on improving the Letters of Credit (LoCs) operation which is traditionally paper based process, Contour strives to digitize LoCs to enable banks and corporates improved efficiency and greater transparency by building connectivity and the trust between all parties who fall in the LC lifecycle.