Standard Chartered Bank has recently invested an undisclosed sum of money on the company Contour, and this has been breaking the news throughout the world. Let us look more into it.
What Is Contour?
Contour is a trade finance company, which was recently renamed from the name Voltron, to establish a new digital global network and make the trade of money in the financial easier and faster, by reducing the time it takes to process Letters of Credit.
The company is already on its way to accomplishing the mission as last year,they started a trial run with more than 50 renowned banks and other companies in over 14 countries, and the response has been quite positive.
What Are Letters of credit?
A Letter of Credit, by definition, is an agreement between two banks, often in two different countries, to make a transaction for a client. One bank acts as a guarantor to the other bank for its client, of course, specified conditions.
Over the years, due to increased globalization, the use of letters of credit has increased tremendously. However, it takes more than 10-15 days to process it.
What Contour Plans to Do?
The CEO of Contour, Carl Wegner, explains that the time and money kept on hold for the slow procedure of the issuing letters of credit is too much of an opportunity cost to bear for the global financial market.
They tend to decrease that time to 24 hours, through a blockchain letter of credit scheme, to make transactions way easier and cheaper.
Global Trade Review (GTR) was the first to report Contour’s rebranding, and they furthermore report that Contour is planning to launch their product commercially by mid-2020.
Moreover, the company is already backed up by HSBC, Bain and Co, SEB, R3, Bangkok Bank, and many more, and they are looking for new promising corporates to join their system to make their network more profound and strong.
Carl Wegner feels very confident and proud of the recent developments of the rebranded company and has high hopes for its contribution to the betterment of the global financial market.