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Simplifying the Letter of Credit issuance through Trust

Blog: Capgemini CTO Blog

In global trade, LC is the commonly used trade finance instrument to ensure payments of goods and services. LCs are used in 11–15% of the global trade, accounting to over a trillion dollars per year.

A typical LC process involves following parties:

Challenges in the current process

To overcome these challenges, it is essential to develop a simplified, trust-based letter of credit issuance solution that would involve the following questions:

The solution:

Capgemini has vast experience in building solutions based on trust. An accelerator built for issuance of LOCs consists of the components built on the Hyperledger Fabric framework, access control mechanism to provide access only on a need-to-know basis, standard set of RESTful APIs for easy integration with existing applications.

An Addon feature is for the applicant to conduct a bid and choose a single bank among multiple banks. This helps the applicant get the best rate and terms on the LC. Below is a short illustration of the accelerator in action:

Benefits of the Capgemini accelerator:

Capgemini, a trusted partner for building trusted networks

Capgemini has an ecosystem to help businesses improve their LOC issuance business processes to achieve better compliance and speed. Capgemini has reference roadmaps to develop a trust network for business processes. A team of domain experts can refine the business processes, and with the help of its team of cloud-native and blockchain experts, Capgemini accelerators play a major role in performing assessments, building target architecture, creating a scalable design, configuration, adaptors, and reusable code patterns. Capgemini has models that can help scale up the solutions at enterprise level. Its benefits have been realized at PoC level. Blockchain service provider alliances enable Capgemini to get required assistance to build an end-to-end solution for its clients.


Any process that requires data immutability, data transparency, trust, multiple stakeholders, need automation of business logic, and system resiliency can have a good impact with blockchain. Any business looking out to upgrade its business processes can save up to 20% in developing such solutions.

This blog is co-authored by Ganesh Prabhu.

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