The programme will streamline the process for negotiating standby letters of credit and guarantees, the conditional agreements used by banks for securing financial transactions. These agreements, used across many industries to secure contracts, are currently conducted via email, making them prone to errors and delays.
For National Bank of Canada, CGI integrated the CGI Trade360 trade finance platform with Skuchain’s Contract Builder, an application built on the blockchain startup’s Brackets platform for smart contracts on a blockchain.
The integration enables National Bank of Canada to provide trade finance services digitally to customers conducting business on a blockchain B2B solution. Thus, customers will be able to initiate, conduct, and conclude negotiations of standby letters of credit and guarantees entirely on smart contracts that can construct agreements and securely communicate any changes in terms to relevant parties. The result is a blockchain-based contract negotiation tool that is effective in the standby letter of credit and guarantee process.
Moreover, by leveraging templates pre-approved by banks and negotiations on a distributed ledger, the integrated platform automates the coordination necessary to issue a standby letter of credit or guarantee. The recently streamlined process offers visibility across the lifecycle, lower costs for all parties, and upgraded collaboration.
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