HSBC: Digitized Letter of Credit Enables Blockchain Transaction

April 19, 2019

HSBC Bank revealed that it has been successful in carrying out the industry’s first overseas blockchain transaction using a digitized Letter of Credit (LoC), an important instrument in the area of international trade, based on a report by International investment.

The bank disclosed that the parties involved in the trade were Australia’s Fox & Lillie, which sent a 19-tonne container of wood to China’s SDIC International Trade Nanjing Company (SDIC).

The blockchain-enabled platform made it possible for firms involved to review the documents in near real-time, as opposed to sending paper documents back and forth. The move was proven to decrease operational costs, lead time, and potential risks for all parties.

HSBC claims that digitizing LoCs will offer exporters greater advantage when sending shipments overseas, thanks to the transparency of blockchain-based platforms.

Ajay Sharma, HSBC’s Asia Pacific Regional Head of Global Trade and Receivables Finance, said that China is the world’s largest issuer of LoCs by value, at nearly US$750 billion last year. He believes the digitization of LoCs could shift the market in China.

Joseph Arena, HSBC Australia’s head of global trade and receivables finance, revealed that the “live deal” between the two parties was made on a blockchain platform that the bank had implemented over the past year in a number of world markets, demonstrating the commercial and operational viability of the blockchain solution.

The transaction was carried out on a new platform, Voltron, which had been developed by multiple international banks and blockchain firms including Bangkok Bank, BNP Paribas, HSBC, ING, NatWest, Standard Chartered, CryptoBLK, and R3.

Source: www.internationalinvestment.net

About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

Related Article
Blockchain Enables Verification of COVID-19 Immunity
Given the virus is not going to disappear in a hurry and we are some time away from vaccinating the ...

November 21, 2020

Illicit Cryptocurrency Activity: A Concern
Market regulators such as SEC has accepted cryptocurrencies as a financial instrument and are consta...

November 20, 2020

IBM Using Blockchain to Help Businesses Reopen during COVID-19
IBM’s healthcare unit, IBM Watson recently announced that they will soon be launching an app to supp...

November 20, 2020

Canadian Pacific Railway Collaborates with TradeLens
Canadian Pacific Railway recently collaborated with TradeLens in a bid to improve its efficacy as an...

November 19, 2020

We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us