Blockchain technology can be used for a wide range of purposes. Citi is currently interested in exploring opportunities related to blockchain-based trade finance.
A new Venture by Citi
The banking giant is looking to make a strategic investment in Contour. Their blockchain-based trade finance platform is of keen interest. For a project only becoming commercially available in January of 2020, things are progressing rather nicely.
It is worth noting how Contour came to be. This is a joint venture between eight banks. Notable backers include BNP Paribas, HSBC, and ING. From day one, the objective has been to transform trade finance. Using immutable distributed ledgers can be of great value in this regard.
Contour makes use of R3’s Corda blockchain platform. Through this technology, the firm aims to modernize the $18 trillion trade finance market. By adding Citi Ventures as its latest backer, that vision has come one step closer.
Citi Ventures MD Luis Valdich adds:
“The Contour team has a trusted background and is partnering with a strong consortium to help digitise Letters of Credit. Citi Ventures is thrilled to support Contour as it pursues its exciting vision.”
This interest in Contour’s technology isn’t too surprising. An initial trial by over 50 banks and corporate partners highlighted the potential of this blockchain venture.
So far, it has proven capable of reducing the execution time of paper-based Letters of Credit from up to 10 days to less than 24 hours. A vast improvement which the entire finance industry can benefit from.