This week Citi India announced it acted as issuing bank for a Letter of Credit (LC) using the Contour blockchain network working with its client, the manufacturer Cummins. It’s the first Contour transaction for Citi India and the first domestic letter of credit executed on Contour, a network that includes 17 major banks.
Contour digitizes the letter of credit process, which has traditionally been an extremely paper intensive trade finance process taking five to ten days to complete. In contrast, the Cummins LC was generated within three hours. By doing away with some of the paperwork, it is also more secure because digital documents can be electronically signed, making them harder to forge.
Both Cummins and its customer are Citi clients. Citi participated in Contour’s Series A+ funding in mid-2021.
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