Mercantile Bank executes first blockchain-based green LC
Mercantile Bank PLC has successfully executed its first Inland Letter of Credit (LC) on a locally developed blockchain-based digital trade platform, marking a significant milestone in the bank's digital transformation journey.
The initiative was conducted under a Proof of Concept (PoC) for the "Green LC," enabling 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 Ltd. (SSCL).
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This effort aligns with Bangladesh Bank's directive (FE Circular No. 06, dated 14 January 2025), which encourages the adoption of electronic solutions throughout the LC process—covering transmission, advising, presentation, acceptance, and other related communications. The successful PoC underscores Mercantile Bank's commitment to trade digitisation and sustainability.
The launching ceremony was held on June 25 at the bank's headquarters. Mati Ul Hasan, Managing Director of Mercantile Bank PLC, officially launched the initiative. Also present were Shamim Ahmed, DMD & CAMLCO; Ashim Kumar Saha, DMD & Head of ICCD; Dr Md—Zahid Hossain, DMD & CBO; and other senior bank officials. Farhanur Rahman, Director of Enterprise Sales at SSCL, also attended the ceremony.
The bank views this as a critical step toward future-ready banking solutions and aims to expand blockchain-based trade services in line with evolving global standards.
