Developing Blockchain Applications for Trade Finance in Bangkok Bank

Bangkok Bank is developing blockchain applications for letter of credit (L/C) transactions, which enables customers to seamlessly make digital transactions for the entire process and enables trade partners to see real-time information.

AIBP 2021 Thailand Enterprise Innovation Award Winner

Project Summary

Established in 1944, Bangkok Bank is the largest bank by assets in Thailand (US$ 127.76 billion; THB 4.276 trillion), and has a market capitalisation of US$ 6.82 billion (THB 228.106 billion). Bangkok Bank has a global presence in 330 locations and currently employs 22,963 people.

Bangkok Bank and its partners established “Contour” in 2021 to revolutionise international trade transactions valued at US $18 trillion. This completely digitises letters of credit. Contour employs Distributed Ledger Technology (DLT), also known as enterprise blockchain, to improve and digitise the entire trade finance process, making it faster and more efficient while also allowing clients to conduct digital transactions along the process. As opposed to typical paper-based transactions, partners will be able to see real-time information, guaranteeing that the transaction is quick, transparent, and low-cost.

Contour was built on R3’s CORDA Enterprise Blockchain and has been successfully tested in 14 countries by 50 banks and partner firms. It can shorten the transaction time in half, from 5-10 days to under 24 hours, or 90 percent faster.

Bangkok Bank demonstrated practical improvements through its ongoing development of financial technology. Enterprise blockchain transforms traditional trade finance by offering customers with cutting-edge technology and innovative services. Furthermore, the bank intends to commercialise Distributed Ledger Technology trade services and expects to make them available to its other trade finance customers.

Sign up for access to exclusive content

    By providing your email address, you agree to our privacy policy.