DBS Bank has joined Contour's network, which is built on R3's Corda and digitalises global trade processes such as the creation, exchange, approval and issuance of letters of credit (LCs).

It is the first Singapore bank to do so, ahead of the blockchain-based platform's full launch later this year, DBS said yesterday.

Other banks in the network include BNP Paribas, Bangkok Bank, ING, HSBC, Standard Chartered and Citi Ventures, according to the website of Singapore-based Contour.

The move will enable DBS to tap Contour's digital solutions to provide a fully digital end-to-end LC settlement process for its customers, including the transfer of electronic trade and title documents.

This will help shorten the settlement time, reduce paperwork and simplify complex trade processes.

Corporate customers can also conduct digital pre-issuance negotiations between applicant and beneficiary in real time, and share this with the bank post-endorsement for issuing of the LCs.

This increases the accuracy of LCs issued and in the event of discrepancies helps hasten resolution, DBS said.

In addition, there will be real-time tracking of transactions on the platform along with a full audit trail, resulting in greater transparency.

The demand for contactless banking amid the Covid-19 crisis also makes digitalising trade processes an increasingly relevant and heightened priority.

Contour's chief executive Carl Wegner said that as more financial institutions join the beta network, it will be able to "showcase the full potential" a blockchain solution can offer to trade finance.

Mr John Laurens, group head of global transaction services at DBS, said the move will transform the way industries work by providing greater transparency, security and speed to build sustainable trade ecosystems that are resilient in times of crisis.

DBS shares closed up $0.30, or 1.5 per cent, at $20 on a cum-dividend basis yesterday.

THE BUSINESS TIMES