This paper presents a groundbreaking approach to modernizing the Letter-of-Credit (L/C) process in trade finance by integrating RSA-Encrypted Non-Fungible Tokens (NFTs). Addressing the prevalent challenges of fraud, privacy concerns, and operational inefficiencies in traditional L/C mechanisms, our research proposes a robust, transparent, and efficient framework. Building upon the advancements in blockchain technology and smart contracts, we introduce a dual-layered security strategy combining RSA encryption with the unique characteristics of NFTs. This integration ensures the secure encryption of trade documents, accessible only to authorized parties, and leverages blockchain’s immutability to create a transparent, tamper-evident record of document ownership and verification. Our approach not only enhances the security and privacy aspects of trade finance but also introduces significant improvements in efficiency through the automation of verification and settlement processes via smart contracts. This paper discusses how our innovative framework sets a new standard in international trade finance, promising a more secure, efficient, and reliable L/C transaction.