The HDBank of Vietnam, announced that it will start providing letters of credit on the blockchain. This major financial institution claimed that it will be the first in the country to do so as we can see more in today’s blockchain news.
The HDBank of Vietnam will initiate the provision of letters of credit on the blockchain thus aiming for a better and safer transaction process for the clients. The bank announced it will issue letters of credit using blockchain technology and will pioneer the local digital market by becoming the first in the country to start offering letters of credit using blockchain technology. A letter of credit is similar to a bank letter which guarantees that a buyer’s payment to a seller will arrive on a pre-determined time and amount.
HDBank fulfilled the issuance and gathered all needed documents, marking a new milestone in the goal to become a “happy digital bank.” The institution will also provide its clients with an outstanding LC transaction method and usage of blockchain technology on a trial basis. The core participants of the project are the leading fiber importer Century Synthetic Fiber Corporation and Tainan Spinning Co. LTD which is a major Taiwanese yarn manufacturer and exporter. This team will also include CBTC which is an advising bank in Taiwan.
According to the reports, the blockchain-based LC transactions will give users higher security compared to the traditional methods as they manage to reduce the transaction processing time and to minimize both the paperwork and the risk of eventual errors. Based on the blockchain, HDBank’s collaboration with larger banks and institutions across the world, these letters can provide more guarantees to the receivers. It created a trouble-free transaction with an instant flow of precise and safe data.
Blockchain and cryptocurrency have managed to get the attention of a lot of institutional level companies across the world. Also, Singaporean DBS Bank showed interest in crypto and blockchain and it even made a soft-launch of its own crypto exchange DBS Digital. Already initiated, the project is focused mostly on providing an ecosystem for fundraising via “asset tokenization plus secondary trading of digital assets including cryptocurrencies.”
The new endeavors include security token offerings, a spot crypto exchange with four fiat currencies and digital custody service.
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