Vietnam based HDBank set to utilise blockchain for letters of credit

Vietnam based HDBank set to utilise blockchain for letters of credit

News


Quick take

1 minute read

HDBank, a massive financial institution based in Vietnam has become the first of its kind in the country to issue letters of credit using blockchain technology. According to a report released this week, the issuance document presentation and successful payment of L/C on blockchain highlight a massive achievement for the institution.

HDBank, a massive financial institution based in Vietnam has become the first of its kind in the country to issue letters of credit using blockchain technology.

According to a report that was released earlier this week on the 6th of January, the issuance document presentation and successful payment of L/C on the blockchain highlights a massive achievement for the institution’s mission to become a “happy digital bank“.

Participants involved in this first transaction were a local fiber importer and a yarn manufacturer in Taiwan.

For those that don’t know, letters of credit are extremely important when it comes to international trading. This is because it can provide a guarantee from an institution worthy of credit. A good example of this is a bank. By utilising the power of blockchain for L/C, there are numerous advantages at hand. Providing a higher level of security and a permanent record of the transaction can also reduce the time that is needed to process such transactions to a matter of hours.

With the institution becoming the first bank in Vietnam to issue letters of credit through the blockchain, will other local banks follow suit? Only time will tell; however, the power of blockchain is very much proven at this point so it would be foolish not to take advantage of it in today’s world.

 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.


Source link

Latest Crypto News


Popular Links

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments