The cryptocurrency market has seen numerous alliances and ties that have taken the industry’s growth to the next level. Countries in the South Asian market have certainly embraced this concept, with Singapore being a hotbed for changes in the virtual asset world.
On 11 May, Singapore’s DBS Bank revealed that it had joined the Contour network to improve processes such as the creation, exchange, approval and issuance of native Letters of Credit [LCs]. Contour is working on a platform built by R3’s Corda, which also has the ability to use its partnership with Ripple.
The latest decision of DBS makes it the first Singapore bank to partner with Contour, allowing it to open new avenues for a myriad of customers. Partnerships have come in hot and well, provided that the complete launch of the blockchain-based network is expected to take place in the final quarter of 2020. Some of Contour’s other partners include Bangkok Bank, ING, HSBC, BNP Paribas, Standard Chartered and Citi Ventures.
Carl Wegner, the Chief Executive Officer [CEO] of Contour stated:
“As more financial institutions join the beta network, it will be able to showcase its full potential. Efficiency in the LC issuance process is a vital part of upgrading the industry. Through our network, we can enable banks and corporates to leverage the shared transparency in the platform and manage information digitally.”
DBS also noted that the ambition and drive of Contour to improve the trade environment was one of the key reasons for the connection. Corporate clients are expected to benefit tremendously from the new agreement, as both companies will now try to leverage competitive interests and increase the pace of trade.
Corporate customers will also have the option of conducting digital pre-delivery negotiations between the claimant and the recipient in real-time. The details collected must be shared with the bank on a line of credit issues. Once multiple accounts and their processes have been digitized, customers can use them particularly in the midst of the COVID-19 situation.
John Laurens, Group Head of Global Transaction Services at DBS Bank, said that the focus was on changing the way businesses work by offering more efficient infrastructure. DBS plans to provide its customers with greater tempo, security and transparency in order to improve their banking experience.DBS has told its community that the digital transfer of trade would be quicker than ever before. Sources suggest that LoC transaction times are set to be reduced to 24 hours from 5 to 10 days of routine.
DBS has been in the blockchain domain for quite some time now and is also a public member of the dltledgers, Singapore‘s native trading network. To show that blockchain technology can be used for practical purposes, dltledgers helped fund shipments to Agrocorp based in Australia on the same blockchain platform.