Letter of Credit automation and management
Letter of Credit automation and management
As blockchain technologies continue to evolve, OneLedger’s expertise in implementing blockchain in advisory banks, trade and the L/C system create opportunities to grow your business by overcoming the industry’s significant challenges.

How does a letter of credit work?
Trade is transactions between trading parties in different countries, with the flow of goods and documents separated. In particular, Letter of Credit, the economic guarantee from a creditworthy bank to an exporter of goods, plays a vital role in settling trade payments.
Current letter of credit system challenges
However, disputes arise due to delays in delivering goods, processing bills, receiving goods, and inconsistencies of the relevant documents.
Trading parties and international organisations have gone to great lengths to address these problems. In particular, bank intervention as a broker of transactions has helped solve trade-related issues. Still, the resulting increase in transaction costs, complex procedures, and paper-based trading practices can hinder trade development. This is because paper documents are bulky in the process. For example, it takes more than five business days to deliver paper documents.
Other raised issue is that If the exporter presents documents that do not meet the conditions of the letter of credit, the payment cannot be collected. The importer has a limitation that the quality of the goods is not guaranteed even if the documents match.
Credit risk arising from trade transactions and the cost of complicated procedures are factors that increase barriers to entry into international trade.
Our solution to these challenges
Letter of credit using blockchain will bring to businesses: transaction-related costs can be significantly reduced because they are not subject to central control and resolve obstacles to current L/C transactions and prevent fraud.
- Letter of credit and all data can store on all parties networks, which can’t be tampered with and verified simultaneously: immutability.
- L/C will be created as NFT on Smart contract and when there is a new transaction, parties certify the transaction in real-time: security and confidentiality.
- Exporters can monitor the importer's L/C application process on the blockchain. Therefore, the possibility of changing conditions due to the importer's error is also reduced. : Transparency of documents and transactions.
- Smart contact can be exchanged within 24 hours by drastically reducing the period required for traditional document exchange from 5 to 10 days. : The speed and traceability of information.
- Reduce administrative processing costs by avoiding time delays due to step-by-step paperwork processing and reducing the number of document exchanges: Simplify administrative processing.
- Blockchain can prevent malicious long-term cargo by preventing false information and securing information reliability. : Preventing long-term congestion cargo cost.
- To achieve friction-free processes, L/C, All parties’s data, payment process and shipping process’s networks must communicate with each other : interoperability
OneLedger can help
Oneledger is a blockchain as a Service (Baas) options supplier founded by experts who worked for Fortune 500 executives and run by a Forbes executive member, partnered with IBM and Google cloud. Positioning itself as a shortcut for blockchain development and aims for easy and broad blockchain adoption. Our vision is to help businesses, governments, and people solve their most complex and essential challenges using the OneLedger blockchain and other disruptive technologies.
This makes it an ideal foundation for developing enterprise-grade applications and industry solutions across a broad array of use cases. In addition, it acts as a gateway between enterprise systems and all of the other public/private or on/off chains.
We offer a consulting service to assist clients who need bespoke solutions; we also provide a suite of customised off the shelf (COTS) applications in most industry segments.