Lloyds Bank has announced a landmark achievement in UK trade finance, successfully completing the nation's first digital Letter of Credit transaction using blockchain technology.
A Pioneering Transaction for UK Trade
In collaboration with WaveBL, a digital platform for trade documents built on blockchain, Lloyds executed this pioneering transaction entirely online. The deal involved a Documentary Credit for Labtex, a laboratory equipment business based in West Yorkshire, and was processed in partnership with a major Indian bank.
The transaction marks a definitive shift from traditional, paper-heavy processes to a streamlined digital system. By leveraging the WaveBL platform, Lloyds demonstrated how digital trade can move from lengthy processing cycles to near real-time execution. The ability to transmit and resubmit documents instantly removes a significant barrier to faster trade finance.
Leadership Hails a Faster, More Connected Future
Surath Sengupta, Head of Transaction Banking Products at Lloyds, emphasised the growth potential this unlocks for UK firms. "UK businesses are increasingly recognising how digital innovation can unlock growth opportunities," he stated.
"By enabling documents to be presented instantly, this technology removes delays and accelerates access to finance. In this case, the speed of digital presentation supported a financing opportunity that would have been impossible using traditional paper processes, given the short payment term," Sengupta explained. He added that this development aligns with the ambitions of a future India-UK Comprehensive Economic and Trade Agreement.
Ofer Ein Bar, Vice President at WaveBL, drew a parallel with the digital revolution in payments. "The same digital leap that changed how we send money is now transforming trade finance. The waiting and manual steps are giving way to instant, transparent, and connected digital flows - and this transaction is proof of that evolution."
Tangible Benefits for Business Efficiency
The client, Labtex, reported substantial efficiency gains. Sherida Hepplestone, an administration chief at the company, confirmed the process was "quick, simple and certainly cheaper for all parties involved."
Hepplestone highlighted that the digital presentation eliminated courier fees and drastically cut transaction time. "From electronic presentation to receipt of funds into our account was four days," she noted, underscoring a significant step forward in process optimisation.
This successful pilot, completed on 3 December 2025, signals a continued move within the banking sector towards a faster, more connected landscape, leaving cumbersome paperwork firmly in the past.
