DBS Bank has joined Contour’s network, which is developed on R3’s Corda and digitalizes global trade processes like the creation, approval, exchange, and issuance of LCs (letters of credit).

It is the first Singapore bank to do so, ahead of the blockchain-based platform’s extensive launch later this year, DBS declared on Monday.

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

DBS will be capable of tapping Contour’s digital solutions to give a completely digital end-to-end LC settlement process for its consumers, including the transfer of electronic trade and title documents. This will support to reduce the settlement time, decrease paperwork, and simplify complex trade processes.

Corporate consumers will also be capable of conducting digital pre-issuance negotiations between applicant and beneficiary in real-time and share this with the bank post-endorsement for LC issuance. This enhances the Efficiency of LCs issued and, in the event of discrepancies, facilitates quicker resolution, DBS stated in a statement.

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

“Joining Contour’s growing ecosystem of banks and partners aligns with DBS’s ongoing efforts to drive greater efficiencies in trade and unlock strategic value for its corporate customers,” the lender said in a statement.

The demand for contactless banking among the Covid-19 situation also makes digitalizing trade processes an increasingly important and heightened priority.

Contour’s chief executive officer Carl Wegner stated in a statement that as more financial institutions enter the beta network, it will be capable to “showcase the full potential” that a blockchain solution can provide to trade finance.

“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,” he added.

John Laurens, group head of global transaction services at DBS Bank, stated: “This is more than simply digitizing a historically paper-based service; it’s about transforming the way industries work by providing greater transparency, security, and speed to build sustainable trade ecosystems that can weather the peaks and troughs of economic cycles and are resilient in times of crisis.”

DBS shares were up S$0.22 or 1.1% to trade at S$19.92 on a cum-dividend basis as at 10.31 am on Monday.