In a recent announcement, the bank said it had effectively accomplished the first international LC (letter of credit) transaction on the oil business-focused blockchain Voltron platform. It is the pilot exchange for PTT Group, PTT International Trading, and IRPC Public Company Limited, which included shipment of an oil item from Thailand to Singapore.
Moreover, sending the records electronically over the blockchain platform implied that all members in the trade had the option to see real-time information when the transaction advanced. Standard Chartered stated, permitted a “Significant reduction” in the time expected to complete the exchange, which took under 12 hours. The customers included were oil and gas organizations PTT Group, PTT International Trading, and IRPC Public Company.
Furthermore, oil organizations frequently use letters of credit for a short-term exchange account. However, the procedure is, to a great extent is manual and paper-based, taking as long as five days for the documents to be dispatched. The organization added that the utilization of blockchain additionally brings the oil business participants of the Voltron platform with more cost-effectiveness, transparency over the supply chain.
Below given is the link for a recent press release by Standard Chartered about Voltron and how they conducted the first transaction on the oil industry by using this platform.
Samuel Mathew, global head, documentary trade product management at Standard Chartered said –
As our clients increasingly look to technology to address the challenges of today’s global trade environment, we are extremely optimistic and excited about the potential opportunities that Voltron brings to the industry with its demonstrated benefits in improved speed and reduced risks of settlement, as well as its flexibility in connecting banks, businesses and other third-party providers in its network.
Voltron platform is a blockchain-based open industry platform to exchange, create, approve, issue Letters of Credit on Corda, which is R3’s blockchain platform. The eight establishing member banks are BNP Paribas, HSBC, Bangkok Bank, CTBC, Natwest, SEB, ING, Standard Chartered, and SEB. Moreover, Voltron will improve the trade fund process by rearranging Letters of Credit, instant discrepancy resolution, delivering shorter settlement times, and simplified authorizations screening.