STAR BUSINESS DESK

Mercantile Bank PLC has executed the proof of concept (PoC) for a green Letter of Credit (LC), marking the bank’s first inland LC transaction on a domestically developed blockchain-based digital trade platform.

Mati Ul Hasan, managing director of the bank, inaugurated the PoC at a ceremony held recently at the bank’s head office in Dhaka, according to a press release.

This milestone represents a significant advancement in Mercantile Bank’s digital transformation journey, paving the way for a secure, paperless, and fully digital trade ecosystem.

ONE Bank PLC participated in the transaction as the beneficiary bank. The PoC was conducted in collaboration with Spectrum Software and Consulting Limited (SSCL).

The initiative aligns with the directive of Bangladesh Bank, which encourages the implementation of electronic solutions throughout all stages of LC processing, including transmission, advising, presentation, acceptance, and associated communications.

Shamim Ahmed, deputy managing director and CAMLCO; Ashim Kumar Saha, deputy managing director and head of ICCD; and Md Zahid Hossain, deputy managing director and chief business officer; along with other senior officials from the bank; were also present.