City Bank Partners with ITFC to Issue Bangladesh’s First Cross-Border Shariah-Based Blockchain LC Transaction

Bangladesh-based City Bank has partnered with the International Islamic Trade Finance Corporation (ITFC), the trade solutions arm of the Islamic Development Bank (IsDB) Group, to execute a cross-border Letter of Credit (LC) transaction under a Shariah-based financing arrangement using blockchain technology. Local media reported that City Bank was the first Bangladeshi bank to execute this type of transaction.

According to local media reports, the ITFC financed the LC under the Murabahah Trade Finance line with City Bank, which was issued on behalf of Debonair Group, a Bangladeshi ready-made garments exporter for the import of accessories from a Hong Kong-based exporter, Apparel Link (HK).

The processing time for the transaction, which was carried out using Contour&rs...